Leading position in the civil and defense aircraft engine industries. Substantial order backlog equivalent to about five years of revenues. Revenues from recurring engine servicing activities, which offset the effects of more cyclical engine sales. Highly competitive and cyclical nature of end-markets. Weaker defense spending and industrial demand and cost pressures weighing on profit margins. Healthy credit metrics to continue, but we expect higher adjusted debt to reduce ratings headroom. Continued supportive financial policy framework. High spending on research and development (R&D) and capital expenditure (capex). Limited free operating cash flow (FOCF). Share buy-back program of £1 billion underway to pay disposal proceeds to shareholders. The stable outlook reflects Standard&Poor's Ratings Services' view that U.K.-based global aerospace and
