...Recovery Driven by Mature Markets: Fitch Ratings maintains a stable sector outlook for EMEA diversified industrials and capital goods in 2015. We expect a slow recovery in operating conditions for the industry from global economic growth of 2.9% (up from 2.3% in 2013), as the recovery in the US and the eurozone take hold. Investment and consumer confidence in mature markets are strengthening, while they are increasingly frail in emerging markets. Stable Credit Profiles: We also maintain a stable rating outlook, as we expect credit metrics to remain broadly commensurate with current ratings, although credit profiles are evolving and headroom could be rapidly eroded in case of further debt-funded M&A. In addition, the capacity to reduce debt will be limited, as internally generated cash flow will be consumed by large shareholder returns. Modest Improvements in Profitability: Fitch forecasts flat to low single-digit growth and modestly improving margins in 2015 from higher capacity utilisation...
