...Fitch's Sector Outlook: Mildly Positive The sector outlook is based on the recovery in global construction markets and growing corporate profitability, as cost-cutting and price increases more than offset cost inflation. In particular, we expect good prospects for US and European markets where many diversified European companies have large exposures. This will widen the gap with companies that have lower exposure to mature markets, with financial leverage remaining a key differentiator in the industry. Rating Trajectory: Mildly Positive Fitch expects limited rating movement in 2018. Credit metrics will improve modestly, as better operating performance and success in improving balance sheets have led to growing optimism. Cash flow generation, however, will remain limited, as companies shift towards more generous shareholder returns and a hunt for growth. This will limit upgrades in the near term, given the cyclical nature of the construction industry. Nevertheless, Fitch could revise to...
