Fitch Ratings has upgraded Russian Helicopters (affiliate of Rostec state corporation) Long-Term Issuer Default Rating (IDR) to ‘BB+’ from ‘BB’ and affirmed the Short-Term IDR at ‘B’ with the stable outlook, the international rating agency said on Wednesday.

“The upgrade reflects Fitch’s views that the recent improvement in the company’s funds from operations (FFO), whilst essentially caused by the depreciation of the ruble, will probably lead to a sustainably improved financial profile with key financial ratios remaining at a level commensurate with new rating,” Fitch said. Russian Helicopters achieved a structural improvement in its pricing and cost structure and is well placed to apply future expected strong free cash flow towards debt reduction, the rating agency reported.