Fitch Ratings 2019 Outlook: U.S. Auto Manufacturers and Suppliers (Sector Stable but Rising Protectionism and Waning Demand Are Concerns)

...Fitch's Sector Outlook: Stable The Stable Outlook on the U.S. auto sector is driven by a combination of solid credit profiles for most issuers and Fitch Ratings' expectation for relatively stable global auto sales and production. Fitch expects U.S. auto sales to decline to 16.9 million in 2019 from an estimated 17.1 million in 2017, which could weigh on U.S. auto manufacturers, given the outsized importance of the U.S. market on their operations. Trade issues are a broader industry concern, but U.S. auto manufacturers and suppliers generally have sufficient flexibility to manage trade-related cost increases or production inefficiencies. Rating Outlook: Stable All of the Fitch-rated U.S. auto manufacturers and suppliers have Stable Outlooks, suggesting near-term movement in their ratings is unlikely. Fitch also has Stable Outlooks on all five of its U.S. auto-related credit opinions. That said, downside risks have increased along with rising geopolitical concerns, which increases the potential...

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