...Rating Derivation versus Peers Peer Comparison Leonardo's credit metrics, which were weak, are now in line with peers at a similar rating level, and with those expected at the `BBB' category. Currently, market risks associated with the helicopter segment resulting from the low oil price limit an upgrade to investment-grade given the importance of this unit's cash generation to the business. However, should the business continue to demonstrate strong profitability and deleverage in line with our expectations, we believe an upgrade may be warranted in the coming 12-18 months. Parent/Subsidiary Linkage No parent/subsidiary Linkage is applicable. Country Ceiling No Country Ceiling constraint was in effect for these ratings. Operating Environment No operating environment influence was in effect for these ratings. Other Factors Leonardo has historically shown some weaknesses in corporate governance. However, new procedures and policies have been put in place in attempt to improve this, and no...
