...Regional Disparities Widen: The stable outlook is supported by a gradual improvement in cash generation and profitability expected for developed European corporates in 2016, despite weak growth and still depressed end-user demand. This contrasts with ongoing challenges for emerging-market (EM) corporates, which face weaker cash generation and higher leverage ¡ limiting their financial flexibility. Early-cycle industries such as building materials and construction, notably in the eurozone periphery, will see the strongest improvements in financial profiles, albeit from a low base. Emerging EMEA Negative: The outlook for emerging EMEA has turned negative, with over a quarter of issuers on Negative Outlook. EMs have become an increasing source of risk to global growth as the collapse in commodity prices and political shocks exacerbate a secular slowdown. Overall, highly leveraged EM companies with dollar-denominated debt, operating expenses and/or capex are most exposed ¡ especially those...
