U.K.-based global aerospace and defense company Rolls-Royce PLC has been fined £671 million to settle charges arising from historic bribery and corruption practices. The cash disbursement of the fine will be spread over 2017-2021. As a result of the fine, we expect Rolls-Royce to show weaker leverage metrics than we had previously expected. We are lowering to 'BBB+' from 'A-' our long-term corporate credit rating on Rolls-Royce. The stable outlook reflects our expectation that Rolls-Royce will show a recovery of profits in 2017, supported by higher volumes and a better business mix, as well as benefits from cost efficiencies, although we do see a risk of negative free operating cash flow. We consider leverage metrics of funds from operations to
