S&P ups outlook on Rolls Royce's long-term debt rating to 'stable'

Perhaps the world's most influential debt ratings agency raised the outlook on Rolls Royce's long-term debt, forecasting a significant improvement in the engine maker's profits and cash flows over the next two years.

Following the clear majority obtained by the Conservatives at the last elections and with the risk of a no-deal Brexit now diminished, Standard&Poor's raised its outlook on the engineer's BBB- rating from 'negative' to 'stable'.

"We now believe that Rolls-Royce is well positioned to deliver against our expectations," S&P said.

"The stable outlook reflects our expectation that Rolls-Royce will continue to deliver on its business strategy, grow revenues, and improve profitability, cash flows, and credit metrics."

As of 1600 GMT, shares of Rolls Royce were advancing 2.29% to 651.40p.