Industry Credit Outlook Update Asia-Pacific: Capital Goods

S&P Global Ratings? Industry Credit Outlook series sets out our industry experts? assumptions and credit outlook for global industries. This report provides a midyear update for the sector, assessing what's changed, what to look out for, and what are the key risks around the baseline.

...A slow recovery in China and some end-markets continues to weigh on the earnings outlook in Asia-Pacific. Key risks include persistently high interest rates and uncertainty around a soft global economic landing. The factors may hurt corporate customer sentiment in terms of capital spending, in turn impeding the recovery of key leverage measures. The demand outlook and degree of margin protection, as well as cash flow management, will be key drivers of credit quality....

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