London’s FTSE 100 was up 1.1% at 7,633.42 in afternoon trade on Tuesday.
Rolls-Royce was the standout gainer on the index after Standard and Poor’s raised its rating for the engine maker’s long-term debt with a positive outlook.
The latter meant that the engineer’s debt might return to so-called investment grade over the next 12-18 months, the ratings credit agency said.
Rolls Royce’s long-term rating was upgraded by one notch to BB, with S&P citing its “strong operating and financial performance in 2022”.
The shares also benefited as Citi lifted its price target to 255p, citing “a clear route to much better cash flow”.
The bank said it had taken a “deep dive” into the company’s underlying cash flow and the upside potential from the chief executive’s as yet unquantified turnaround plan and concluded that Rolls-Royce offers a continued strong investment performance.
Barclays was on the front after suffering heavy losses on Tuesday, while British Gas owner Centrica gained after announcing plans to extend the lives of two UK nuclear power stations.
FTSE 100 – Risers
Rolls-Royce Holdings (RR.) 155.88p 7.50%
Barclays (BARC) 152.50p 3.40%
Spirax-Sarco Engineering (SPX) 11,210.00p 3.03%
BAE Systems (BA.) 935.40p 3.02%
Centrica (CNA) 107.00p 2.93%
InterContinental Hotels Group (IHG) 5,466.00p 2.71%
Weir Group (WEIR) 1,851.00p 2.69%
Auto Trader Group (AUTO) 584.60p 2.60%
St James’s Place (STJ) 1,186.00p 2.60%
Land Securities Group (LAND) 633.80p 2.59%
FTSE 100 – Fallers
Fresnillo (FRES) 734.80p -1.69%
Pearson (PSON) 835.40p -0.78%
Glencore (GLEN) 455.15p -0.77%
Imperial Brands (IMB) 1,907.50p -0.68%
Johnson Matthey (JMAT) 2,025.00p -0.59%
Beazley (BEZ) 542.00p -0.55%
British American Tobacco (BATS) 2,998.00p -0.51%
Hiscox Limited (DI) (HSX) 1,108.50p -0.45%
Airtel Africa (AAF) 113.50p -0.35%
Standard Chartered (STAN) 686.60p -0.32%
