Margin Pressure at Risk of Intensifying for Global Middle-Market Issuers
DBRS Morningstar released a commentary titled “Margin Pressure at Risk of Intensifying for Global Middle-Market Issuers.” DBRS Morningstar expects downgrades across middle-market issuers to remain more likely than upgrades given uncertainty about the trajectory of interest rates and the threat to revenue growth and operating margins posed by a broad economic slowdown in the North American and European/UK regions.We believe issuers with a high proportion of long-term contractual revenue, a focus on nondiscretionary products and services, and a sticky customer base are best positioned to produce financial performance commensurate with stable rating profiles. In contrast, we expect the ratings of cyclical companies that manufacture commodity-like products, focus on discretionary consumer-focused products and services, or rely on new project wins to support current capital structures to remain vulnerable to adverse economic conditions.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.