U.K.-based global aerospace and defense company Rolls-Royce PLC faces several near-term business challenges, notably in its civil aerospace and marine divisions. We have revised down our expectations for Rolls-Royce's profits, cash flow generation, and leverage metrics for 2016. We are therefore revising our outlook on Rolls-Royce to negative from stable. We are affirming our 'A/A-1' long- and short-term corporate credit ratings on Rolls-Royce. The negative outlook reflects the possibility that we may lower the ratings by one notch within the next year, if we expect Rolls-Royce's profits, cash flow, and leverage metrics to remain weak into 2017. On Jan. 18, 2016, Standard&Poor's Ratings Services revised to negative from stable its outlook on U.K.-based global aerospace and defense company
