Fitch upgrades GKN

Fitch Ratings said it upgraded GKN Holdings plc's long-term issuer default rating and senior unsecured ratings to BBB- from BB+, along with its short-term issuer default rating to F3 from B.

The outlook is stable.

The upgrade reflects the company's strong profitability recovery, improved cash flow and significantly lowered leverage, the agency said.

These credit metrics are underpinned by its leading positions in its markets, global footprint, highly diversified customer base and product diversification in automotive driveline and powder metallurgy products, Fitch said.

The stable outlook reflects a belief that the company's business and financial profiles have significantly improved after several years of extensive restructuring efforts, the agency said, and that the results are sustainable.

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