OREANDA-NEWS. Fitch Ratings says in a new report that the sector outlook for EMEA aerospace and defence is increasingly buoyant with an expected rise in defence spending complementing the strong dynamics evident for the last several years in commercial aerospace.

The Rating Outlook generally remains Stable for EMEA aerospace and defence companies, reflecting company-specific factors such as cash deployment, programme execution and strategy.

The report follows Fitch's recent roundtable discussions and addresses the following key questions raised by investors.

-Why are the sector and rating outlooks not positive when there is so much optimism surrounding the industry?
-Will defence spending in Europe finally pick up in the short term? If so, which companies stand to benefit the most?
-What is the outlook for the export markets which have provided such a fillip to a lot of European original equipment manufacturers (OEMs) in recent years?
-If the outlook on UK and US defence spending has improved, why is BAE Systems still on Negative Outlook?
-What are the most important factors in resolving the Negative Outlook on Rolls-Royce? What is the timeline in which the Outlook will be resolved?
-Is there a threat of a bubble in single-aisle large commercial aircraft (LCA) given the strong order flow over the past few years and the announced production increases?
-What is the greatest risk associated with the planned ramp-up in LCA?
-Will the new entrants from emerging markets into the LCA market have a disruptive effect on Airbus and Boeing?
-Will M&A activity by European companies pick up in 2016?
-What effect is the lower jet fuel price having on demand for new aircraft?