S&P Global – Capital Goods Credit Outlook, 2025

The report by S&P Global "Capital Goods Credit Outlook, 2025" analyzes the financial landscape and future prospects for the capital goods sector. The capital goods industry faced prolonged destocking in 2024, leading to stagnant revenue growth. Despite this, investment-grade debt levels increased due to low credit spreads, with expectations of a $30 billion reduction in 2025 as companies refinance near-term maturities. Interest rates have affected demand, but a rebound in revenue is forecasted for 2025, driven by long-term investments. The report highlights continued low default rates, though refinancing risks loom for lower-rated issuers. Global demand is expected to support revenue growth, with ongoing geopolitical uncertainties influencing business decisions.