Corporates
S&P Global Ratings rates over 4,600 corporates globally, giving us timely insight into cross-industry credit trends. This page is dedicated to delivering our most far-reaching, thought-provoking opinions to our stakeholders.
European Chemical Sector Pulse: Earnings Rebound, Demand Remains Weak
- Earnings among European chemical companies improved in the second quarter of 2026. Higher pricing and spreads, inventory effects, and cost reductions helped profits, while underlying demand remained subdued.
- Supply tightness related to the Middle East war created short term gains but did not resolve structural overcapacity.
- Guidance for 2026 has been more resilient than underlying demand with most issuers maintaining or raising earnings expectations despite cautious market assumptions.
- Rating headroom has improved for many investment-grade issuers, but about one-third of speculative-grade ratings still carry negative outlooks and downgrades continue to materially outnumber upgrades.
Cost Cutting Is EU Automaker’s Best Near-Term Defense Against U.S. Tariff Pressures
- The EU parliament’s approval of the EU-U.S. trade agreement, which had been pending since summer 2025, provides more predictability for European automakers, though the trade relationship remains prone to unexpected setbacks.
- Cost cutting appears to be European automakers’ most effective short-term tool to offset EBITDA margin pressures, given limited pricing upside in the U.S. market and the time and capital required to shift production to the U.S.
- Should EU-U.S. trade relations sour, premium automakers Mercedes, BMW, and Volvo will face the greatest credit quality pressures, while an (unexpected) material reduction in tariffs on Mexico and Canada under a modified United States-Mexico-Canada Agreement would primarily benefit the creditworthiness of Stellantis.
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