Fitch Ratings said the favorable outlook for commercial aerospace is based on demand outside of North America.

Fitch Ratings has said it predicts a ‘positive outlook’ for credit quality in the North American commercial aerospace industry in 2008, as well as a ‘stable outlook’ for credit quality in the country’s defence sector.

The favourable outlook for commercial aerospace is based on demand outside of North America, which has resulted in large order books and strength in all commercial product segments, the global rating agency said.

The defence credit outlook, meanwhile, is supported by high Department of Defense (DoD) spending levels.

According to the agency, supplemental defence spending to support operations in Iraq and Afghanistan will likely continue through 2008, and any impact from lower supplemental spending would not be significant for several years due to the need to reset and modernise equipment.

It also highlighted the fact that “the outcome of the US presidential elections is not likely to affect core defence spending until full year 2011.”

To read the full report, visit www.fitchratings.com. Alternatively, visit the website in January 2008 to obtain access to a more detailed report on the global 2008 aerospace and defence industry outlook.