...Stable Outlook Despite Emerging Market Weakness A preponderance of stable rating outlooks incorporates Fitch Ratings' view that most issuers are positioned to cope with slower growth in emerging regions, the impact of low commodity prices and currency movements. Other risks include debt-funded acquisitions and shareholder-friendly cash deployment. Slowing Growth in Emerging Markets Growth has slowed in developing regions, which have been an important source of demand for diversified industrial and capital goods companies. The impact is mitigated by a strengthening U.S. economy. Currency movements associated with these economic trends are contributing to lower sales, although revenue growth on a constant currency basis often is slightly positive. Low Oil Prices Hurt E&P Equipment Lower energy prices have prompted a cut in capital spending for energy exploration and production that affects demand for equipment from U.S. diversified and capital goods companies (e.g. Caterpillar Inc., Cummins...
