...Rating Headroom, M&A: Fitch Ratings expects the large acquisition headroom that thanks to funds from operations (FFO)-adjusted net leverage well below 1.0x, Henkel AG & Co. KGaA has had for its 'A' rating level since 2014, to diminish by end-2016 and not to materially recover over 2017-2020. This follows acquisition spending of approximately EUR3.7bn in 2016 on laundry and home-care company Sun Products and some haircare brands from Procter & Gamble and possible further bolt-on M&A. However, we estimate that net leverage will still be no higher than 1.2x-1.3x (2015: 0.1x) for 2016 and should, over 2017-2020 remain well below the 2.0x maximum threshold for the current rating. Steady Revenue Performance: The ratings reflect Henkel's steady sales growth and profit performance over the years which we expect to continue over the rating horizon. Henkel achieved average organic sales growth of 3% in 2015 (partly thanks to a strong contribution from organic sales growth in emerging markets of 5.9%),...
