...Stable Outlook: Fitch Ratings expects Kingfisher plc to continue to generate adequate funds from operations (FFO), despite headwinds in selected European and international markets, and that capex and dividends will constrain free cash-flow (FCF) generation. We expect financial headroom to decline in the near term as the group undertakes its share buyback programme in 2015. However, the affirmation of October 2015 reflects our belief that Kingfisher will pursue a financial policy within the parameters commensurate with the ratings. Evolving Strategy, Operational Model: Fitch views the company's new strategic direction, as a positive step towards addressing underlying changes in the retail market and consumer shopping habits. However, Fitch expects this strategic development will require investment in integrated IT networks before full cost benefits can be achieved, which we expect to be after the financial year ending January 2017 (FY17). Stable Profitability: Fitch expects stable profitability...
