...Transportation Sale a Positive: The disposal of the Transportation division, announced in February and expected to close in 2H15, is likely to improve Finmeccanica's overall financial profile. This could lead to the Rating Outlook being revised to Stable if key ratios recover to levels commensurate with the 'BB+' rating. As a consequence of the sale Finmeccanica will benefit from the removal of underperforming, non-core assets which will allow management to focus on its aerospace and defence activities, some of which are undergoing restructuring. We expect the proceeds from the disposal to lead to a reduction in net debt of approximately EUR600m by end-2015, improving net leverage by around 0.5x to under 3x; the funds from operations (FFO) margin may improve by approximately 1% after the elimination of the transportation business. Challenging Industrial Plan: The new plan, unveiled by new CEO Mauro Moretti in January 2015, demonstrates the difficulties of materially improving the Italian...
