...EM/DM Convergence: Fitch Ratings expects emerging EMEA corporates' (EMs) key credit metrics to weaken, but remain slightly stronger than those of their developed-market (DM) counterparts in 2014 and 2015 amidst slowing growth and high capital investment levels. EM corporates are expected to continue to have slightly higher profitability, lower leverage and higher fixed charge cover, albeit whilst operating in more challenging business, legal and capital-market environments. Fundamentals at Odds: Developed Europe seems to have turned a corner with Fitch expecting economic growth to continue the gradual recovery observed since mid-2013. Conversely, corporates operating in emerging economies are facing increased headwinds from slowing growth, persistent structural imbalances, effects of the political turmoil in Russia/Ukraine and vulnerability to FX volatility. Pressure on EM Corporates: The growth differential between DMs and EMs has narrowed to the closest level in a decade, and while DM...
