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Fitch predicts difficulties for the European industry
31 January 2008In the report published on January, 30th, 2008, international rating agency Fitch Ratings marks that the general forecast on ratings of the European industrial companies will be stable.
At the same time such branches as manufacture of automobile accessories, construction of habitation in the Western Europe, the paper and wood industry, and also manufacture of building materials have negative prospects.
Suppliers of automobile accessories test constant price pressure from manufacturers of cars and owing to rise in prices for raw material. Needs of branch for investments remain high because of combination of the global tendencies demanding from suppliers to follow expansion manufacturers of cars in the new countries and necessities simultaneously to invest in increase of safety, fuel efficiency and harmless technologies.
In analysts’ opinion building companies in the Western Europe will face easing credit status because of leverage increase in result of merges financed due to extra means and absorption and the return repayment of actions, and also the falling of profit caused by macroeconomic conjuncture deterioration.
The forecast on the paper and wood industry is negative, owing to the inflation caused by rise in price of means of production, strengthening of a competition in developing markets, easing of US dollar, etc.
Fitch with care considers sector of building materials, where safety factor on existing ratings, was reduced in result of vigorous merges and absorption in the last years.
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