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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Potential for further rating upgrades if guidance can be maintained or upgraded, which could help spreads outperform. Fundamentals in the sector are solid, with further supply chain developments the main downside risk.
- Rolls is expected to post another strong result on Thursday with consensus pointing to +9% revenues and +10 EBITDA YoY. That’s despite ongoing supply chain issues in aerospace. Orders in the sector are robust
- On that basis leverage should tick down again on EBITDA growth and positive cash flow; it’s already quite conservative for the rating and better than Moody’s upgrade threshold, as is liquidity. Margins improvement needs to be “sustainable” which seems to be the case.
- ROLLS spreads can be noisy with the bonds quoted on cash price due to their history in HY. While equity has been on a good run, credit has been mostly sideways since rallying in January. Spreads are currently towards the wide end of low triple B industrials.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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