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June 25 (The following statement was released by the rating agency)
Fitch Ratings says in a new report that leveraged loans in food and healthcare will benefit from an improved economy and rising consumer confidence, while non-food retail, gaming and leisure credits will be subject to intense competition and the need to adapt their business models.
In its European Leveraged Loan Dashboard for Consumer & Healthcare 2Q14, Fitch looks at the key themes affecting issuer credit profiles for the sector in Europe under the following headings:
- Key theme: Mildly positive macroeconomic scenario driving sales growth, margin compression expected
- Highly speculative grade profile to remain in the 'B' category
- Large refinancing needs by 2018
- "At risk" credit portfolio clouds the outlook
- The rating impact of the above
Issuers covered in the special report include 154 credit opinions (COs) in Fitch's European Leveraged Finance portfolio across different sectors mainly in general retail (food/non-food retailing), healthcare, food, beverage & tobacco, lodging & restaurants and gaming, leisure & entertainment. The latest global list of Fitch's credit opinions can be found in the following link:
Fitch Credit Opinions - Global List (April 2014)
The dashboard is available at www.fitchratings.com or by clicking the link at the top of this commentary.
Link to Fitch Ratings' Report: EMEA Leveraged Loan Consumer and Healthcare - 2Q14