Daily Management Review

S&P expects US corporate sector growth in 2020


12/19/2019


The international rating agency S&P Global Ratings (S&P) expects US corporate sector growth next year, despite continuing risks around trade tensions and uncertainties regarding the US presidential election, the agency said in a release.



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“Despite the pressure from these constraints, our basic forecast indicates continued growth in the corporate sector amid increased revenue and cash flow for companies, even if the growth seems less strong compared to previous years,” said head of S&P David Tesher in Global Ratings Credit Research.

S&P also noted that an increase in the share of companies with a negative outlook on ratings, which the agency defines as the percentage of issuers with a negative outlook or on the list for review with a possible downgrade, also indicates to borrowers a tougher operating environment.

The agency noted that it expects revenue growth in all sectors, and that the forecast is critical for US GDP growth indicators and stabilization of growth in some key markets (Europe and China), which have experienced a weaker economic growth in recent quarters.

source: standardandpoors.com