Fitch Ratings has assigned a ‘neutral’ sector outlook for APAC corporates in 2026, mirroring expectations that credit metrics will improve mildly across our portfolio of rated entities.
Key credit drivers remain generally stable in most sectors and markets, according to Fitch, as geopolitics, further tariff developments and supply-chain fragility will pose notable risks that could derail our projections for a recovery in credit metrics.
Fitch is expecting that easing input costs will lift aggregate EBITDA margins slightly among our rated APAC corporates, to over 15% from around 14.5% in 2025, with free cash flow also improving marginally, despite uneven economic growth across the region.
Meanwhile, the ‘deteriorating’ outlook on APAC technology reflects exposure to consumer electronics products, which are exposed to sustained global consumer weakness, and the potential for higher US tariffs to affect demand.
However, Fitch says products linked to AI demand will continue to benefit. The credit rating agency also maintained a ‘deteriorating’ outlook on automotive, chemicals and shipping because of their exposure to unfavourable trade policies in 2026, and because structural headwinds leave them exposed to earnings pressure.
