...Resilient Financial Profile: MTU Aero Engines AG's ratings reflect its solid financial profile, exemplified by an 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. Good Market Position: MTU benefits from its position as a key component manufacturer for aircraft engines, exposure to a diverse range of aircraft platforms in both the commercial and defence aerospace sectors, and long-term relationships with the world's largest engine manufacturers. Cash Deployment: The group's cash deployment strategy is key to the maintenance of a 'BBB-' rating. 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...
