...Resilient Financial Profile: The ratings of Germany-based aerospace and defence company MTU Aero Engines AG (MTU) reflect its solid financial profile, exemplified by a funds from operations (FFO) margin of over 7%, gross lease-adjusted leverage of around 2x, strong financial cost cover above 8x and adequate liquidity. Key ratios declined in 2014 due to development and production ramp-up on new products, but are likely to return to historical levels in the medium term as this levels off. Cash Deployment: The group's cash deployment strategy is key to the maintenance of the present ratings. Fitch Ratings believes 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 resulting from new engine programmes in the development stage. Good Market Position: MTU benefits from its position as a key component manufacturer for aircraft engines, exposure...
