...Fitch Ratings revised the Outlook on Germany-based aerospace and defence company MTU Aero Engines AG's (MTU) Long-Term Issuer Default Rating (IDR) to Positive from Stable and affirmed the IDR at 'BBB-' in January 2018. The Short-Term IDR was also affirmed at 'F3'. The Positive Outlook reflects MTU's better than previously expected cash generation. Fitch believes this may be sustainable through the medium to long term and remain at levels in line with expectations of a 'BBB' rated aerospace and defence supplier. Fitch expects the company to begin generating positive free cash flow (FCF) from 2018 and that it will remain at above 4% of revenue in the medium term. At the same time, Fitch believes that MTU is likely to maintain a conservative cash deployment strategy. This will ensure that the capital structure, which is already strong for the rating, remains broadly stable....
