In terms of peer analysis, BAE has better geographic diversification than most of its US peers, such as Lockheed Martin Corporation (NYSE: LMT ) (A/Stable) and Northrop Grumman Corporation (NYSE: NOC ) (BBB+/Stable). BAE's EBITDA leverage is forecasted to be modestly better than that of most peers, while converging with Lockheed Martin's over the medium term. Fitch's key assumptions include revenue growth averaging 8% to 2028, EBITDA margin consistently between 12.5%-14% until 2028, stable annual capex at 4% of revenue until 2028, and a gradual increase in dividend payments, in line with profitability. Potential factors that could lead to a negative rating action or downgrade include EBITDA leverage and EBITDA net leverage sustained above 2.5x and 2x, respectively, reduced revenue visibility with the backlog to revenue ratio sustained under 2.0x, and FCF margin sustained below 5%.