S&P Sees Stable Credit Outlook for European Consumer Goods

by: Research Recap

The credit outlook in the EMEA consumer goods industry remains stable over the next 12 months in Standard & Poor’s Ratings Services’ view, since most rated companies in the sector are generating positive free cash flows and funding needs are well met.

“In respect of operating fundamentals, we remain mindful of rising input costs, as well as the uncertain balance between product pricing and volumes. These factors might depress gross margins for consumer goods manufacturers over the next 12 months if consumer and business sentiment retreats sharply in reaction to macroeconomic data and fiscal policy announcements.”