2015 U.S. Corporate Credit Outlook: Generally Stable, But Risks Are Rising

2015 U.S. Corporate Credit Outlook: Generally Stable, But Risks Are Rising

Our credit outlook for U.S. corporate ratings in 2015 is generally stable. We expect continued U.S. economic improvement to counteract slower growth overseas. We also see U.S. corporate revenue continuing to grow in the mid-single digits in 2015, in line with aggregate nominal economic growth prospects. Although the sharp decline in oil prices will weigh on energy sector conditions, it will immediately benefit airlines, trucking, and auto manufacturers, while lowering energy costs for many other segments of the economy. It could also boost consumer spending in 2015 and 2016, but stronger income gains are likely needed for more robust long-term growth. We forecast that corporate refinancings will remain manageable in 2015 because protracted low interest rates and credit-friendly borrowing conditions have allowed many companies to push out maturities. However, U.S. interest rates are reaching an inflection point, and we expect the Federal Reserve to make its first policy interest rate increase in second-quarter 2015.

Attend our Live Facebook Q&A Event – Careers in Credit and Banking, on 30th Jan 2015, 4pm IST at https://www.facebook.com/events/1404859183144414/

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About AIWMI

The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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