...Coronavirus Effects: Fitch Ratings expects chemical producers' earnings to be significantly affected through 2021, particularly within polyethylene and polypropylene, due to the pandemic and recessionary end-market weakness, leading to reduced volumes and pricing. Commodity and specialty chemical issuers with heightened exposure to specific end markets, such as auto, energy and construction, are likely to see greater negative effects to earnings in the near term. Issuers selling into end markets, such as packaging, consumer nondiscretionary and healthcare, will display more resiliency. According to Fitch's current Global Economic Outlook, U.S. and Eurozone GDP will remain below pre-virus levels through 2021, but will see performance improve beginning in 2022, with metrics near 2019 levels. Fitch believes chemical demand across general industrial and construction end markets will recover around this period, with auto demand having a more prolonged recovery. Longer term, Fitch expects chemicals...
