National Express's debt ratings affirmed by Fitch

Fitch said the affirmations reflected National Express's stable operating performance for 2015, which was better than the ratings outfit's expectations.

"National Express' ratings reflect the company's continued strong position in the Spanish and UK coach and bus markets, and the US school bus markets," it said.

"The company is well diversified compared to peers, with operations in local bus, school bus, coach and rail markets in the UK, Spain, Germany and the US."

The ratings firm noted that its Fitch-adjusted funds from operations net leverage was high for the rating.

"We expect the ratings to be supported by the company's ability to consistently produce positive free cash flow along with a robust fixed-charge cover and a reduction of leverage."

Earlier in May, National Express said it had made a strong start to the year and was on track to meet its full-year profit, free cash flow and leverage targets.

It reported constant-currency revenue up 11% in the four months to 30 April, including the benefit of acquisitions and the start of German rail operations in late 2015.