Fitch: Robust U.S. Economic Growth Underpins Stable Corporates Outlook
The median EBITDA margin for Fitch's rated portfolio has steadily increased for the past several years and is forecast to continue to grow. Median FCF is forecast to increase due to FFO growth from expanded EBITDA margins and growing revenue.
Leverage on a total debt to EBITDA basis has remained steady and is expected to remain so. Coverage on both an EBITDA to gross interest and FFO to fixed charges basis has improved as corporates have taken advantage of low historical interest rates.
Sluggish international growth could weigh on U.S. Corporates in 2015. A large portion of Fitch's rated portfolio of U.S. corporates has material if not significant international operations. Fitch expects U.S. growth to be robust in 2015 but international growth could be challenged.
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