...Resilient Financial Profile: The ratings of Germany-based aerospace and defence company MTU Aero Engines AG (MTU) reflect its solid financial profile, exemplified by underlying funds from operation (FFO) to revenue of around 8%, gross lease-adjusted leverage of under 2x, strong financial cost cover and adequate liquidity. Cash Deployment: Key to the maintenance of the present ratings is the group's cash deployment strategy. Fitch Ratings believes that MTU is unlikely to significantly alter its dividend policy or instigate share buybacks in the short to medium term, but rather use its operating cash flows for business expansion in view of the investment needs posed by new engine programmes in the development stage. Good Market Position: MTU benefits from its position as a key component manufacturer for aircraft engines, its exposure to a diverse range of aircraft platforms in both the commercial and defence aerospace sectors, and its long-term relationships with the world's largest engine...
