OREANDA-NEWS. Fitch Ratings says in its latest EMEA Corporate View Dashboard that companies continued to benefit from the ongoing trend of declining coupons, which fell to a new average low of 3.5% in 7M15, and investor appetite for longer maturities in their search for higher, longer-dated yields. The low cost of funding has been the key factor behind the growing interest from international corporates and this trend is likely to remain a key support for primary supply for the rest of the year.

Our latest quarterly forecasts show a slight weakening in median free cash flow (FCF) margins in 2016, partly driven by increasingly anaemic global growth on the back of slowing Chinese growth and rising challenges across emerging markets. Low oil and commodity prices will continue to pressure miners and oil and gas exploration companies in the near-term. The impact on ratings will largely depend on company-specific actions to cut costs and preserve profitability.

Key themes to watch in 2016 include continuing M&A as companies face dim growth prospects. European corporates have increasingly turned to M&A as a weapon of choice to achieve cost savings from consolidation or, to a lesser extent, to acquire growth.

The Dashboard provides a quarterly snapshot of EMEA corporate market conditions, including bond issuance, spreads and rating migrations. The report also provides a summary of qoq changes in sector forecasts and rating Outlooks.

The full report, 'EMEA 3Q15 Corporate View' is available at fitchratings.com.