Fitch Ratings said Friday that it has revised its outlook on Ryanair Holdings (RYAAY) to positive from stable and affirmed the airline's long-term issuer default rating at 'BBB+'.

The revision shows Fitch's expectation that Ryanair will maintain a strong financial profile, supported by Ryanair's operating performance and positive free cash flow generation despite increased capex, the credit agency said.

Fitch also noted Ryanair's competitive cost structure, with only modest unit cost rise, in a macro environment that has been challenging for many of the airline's peers, the company said.

"We would consider an upgrade if earnings before interest, taxes, depreciation, amortization, and rent leverage fell well below 1x in the medium term with a sustained net cash position," Fitch said.

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