DBRS Morningstar Expects Consumer Staples Companies To Weather Economic Turbulence
While demand for staple consumer products, including food and personal and household care products, is largely inelastic, it is certainly not immune to soaring inflation. Consequently, above average economic turbulence for an extended period could weigh heavily on the financial performance of consumer staples companies. That said, DBRS Morningstar considers most consumer staples companies that we rate to be well positioned within their current rating categories to navigate a certain amount of economic headwind over the near to medium term. Rating category headroom aside, this view is further based on the expectation that the consumer staples companies in our portfolio should generally be able to partially pass through cost increases, continue to execute their cost-saving and efficiency-improving initiatives, and exercise capital management in a balanced manner.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
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