...Continued Pressure on Growth: Fitch Ratings has revised its sector outlook from stable to negative. Low commodity prices and muted capital investment continue to constrain revenue growth for diversified industrials and capital goods manufacturers. We expect companies selling equipment to commodity-driven end-markets, such as oil and gas, metals and mining or construction, to face difficulties in achieving growth. We expect only modest revenue increases in 2017, mainly driven by currency effects as order books decline. Emerging-Market Downturn Continues: Demand weakness for capital goods in emerging markets persists and we expect this trend to continue in the medium term. At the same time, we expect steady economic growth and expansionary monetary policy in Europe to further drive industrial demand, thus partially offsetting declining sales in developing economies. Resilient Profitability: European capital goods issuers have managed to maintain stable profitability margins due to restructuring...
