2015 Outlook: North American Chemicals (Strong Domestic Growth)

...Stable Outlook: Market conditions support stable operating profiles for the period. Rated North American issuers have solid financial profiles and robust liquidity. The sector is comprised of many heterogeneous products each with its own competitive dynamics and end-market exposure. Above Average Growth: Chemistry supports a significant portion of U.S. GDP, and producers should benefit from strong domestic growth in manufacturing and the recovery in U.S. construction and consumption. Strategic focus continues around population trends for new product development and specialization, rather than commoditization for higher margins. European Headwinds: More than 20% of revenues for some North American issuers come from EMEA where demand growth is expected to be positive but weak. The weaker euro will challenge exports and results decline when translated into dollars. Two Years of Strong Crops: In the agricultural segment, high stores may result in lower planted acreage which will weigh on seeds...

Outlook