In the latest edition of Inside Credit, Fitch Ratings says the outlook for EMEA corporate cash generation is brighter but still cautious. Despite the gradual economic recovery in Europe, macro risks remain weighted to the downside and even a slight delay in the expected upturn could hit already-stretched corporates hard.
'A sharp increase in capital investment is probably off the table this year. Among the largest corporates, management teams will continue to use M&A as their weapon of choice to boost revenues in the face of weak demand,' says Roelof Steenekamp, Senior Director.
Fitch says the strongest cash generation will be seen in the industrials sector, followed by consumer, healthcare and telecoms companies.
