Fitch Ratings affirmed ABB Ltd.'s long- and short-term issuer default ratings at A-/F1 and removed them from Rating Watch Positive, assigning a stable outlook.
The stable outlook reflects the rating agency's expectation that more time will be needed for the integration of new acquisitions and the portfolio reshuffle.
Fitch expects ABB's funds from operations adjusted net leverage to slip below 2x in two years, which is outside the Rating Watch scope. This compares to FFO net leverage of 3.4x at the end of 2018.
The company's profitability may be under pressure in part due to its acquisition of GE Industrial Solutions Inc., which has low profitability in the U.S. and saw more pronounced weakness in robotics and autos, Fitch said.