As 2016 begins, Fitch Ratings sees a difficult environment for U.S. diversified industrial and capital goods companies. As described in the Diversified Industrial and Capital Goods Handbook published on Jan. 15, 2016, adverse trends include slower growth in emerging markets and low commodity prices which are reducing demand for industrial equipment in mining, oil and gas, agriculture and heavy duty truck markets. There is little evidence these trends will reverse anytime soon.

Despite these concerns, Rating Outlooks are generally Stable as ratings incorporate cyclicality inherent in the sector. Some relief is provided by growth in non-residential construction and aerospace markets. Other topics include shareholder focused cash deployment, currency movements, the industrial internet, and company-specific developments.

The handbook also contains summary credit profiles for 45 companies including credit drivers, summary liquidity tables, organizational charts, and covenant summaries for certain below-investment-grade companies. Several charts track key macroeconomic trends that affect industrial companies. The report will be updated periodically to incorporate future sector and company developments. Any suggestions related to increasing the relevance and usefulness of the report are welcome.

Additional information is available at 'www.fitchratings.com'.

U.S. Diversified Industrials and Capital Goods Handbook

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874827

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