Tear Sheet: Rolls-Royce PLC

The civil aerospace engine manufacturer will likely outperform our existing base case for 2023, leading to revisions in our forecasts and improving credit metrics, but we will review upside potential once the results of the upcoming strategic review and management's intentions are clearer. Rolls-Royce plans to announce this in the fourth-quarter 2023. The group's good financial performance stems from an improved operating environment in civil aerospace, since wide-body engine flying hours continue to recover. International revenue passenger kilometers, which are relevant for Rolls-Royce with its wide-body aircraft focus, were only 9.2% below 2019 levels in May 2023, according to the International Air Transport Association. This supports Rolls-Royce's strong first-half performance, which saw underlying operating profit in civil aerospace rise to

...August 15, 2023 Rolls-Royce PLC's first-half 2023 results show a further recovery and S&P Global Ratings expects that the group's credit metrics will eventually strengthen to a level commensurate with a '##+' rating. The civil aerospace engine manufacturer will likely outperform our existing base case for 2023, leading to revisions in our forecasts and improving credit metrics, but we will review upside potential once the results of the upcoming strategic review and management's intentions are clearer. Rolls-Royce plans to announce this in the fourth-quarter 2023. The group's good financial performance stems from an improved operating environment in civil aerospace, since wide-body engine flying hours continue to recover. International revenue passenger kilometers, which are relevant for Rolls-Royce with its wide-body aircraft focus, were only 9.2% below 2019 levels in May 2023, according to the International Air Transport Association. This supports Rolls-Royce's strong first-half performance,...

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