CHICAGO--(BUSINESS WIRE)--Fitch Ratings has published its quarterly leveraged market synopsis, 'U.S. Leveraged Market Quarterly.' The report reviews third quarter 2014 activity and provides a worked Energy recovery as well as a sector spotlight on U.S. Building and Home Products and Services.
Liquidation Value Drives Energy Recoveries:
For U.S. Corporate Energy companies, Fitch's general expectation is that Enterprise Value (EV), and hence recovery rates for its creditors, will be maximized in a liquidation of proved (P1) oil and gas reserves. Oil and gas reserves are fairly liquid and make up the majority of Energy exploration and production (E&P) company assets. A recovery analysis has been illustrated for MEG Energy Corporation in this edition of the Leveraged Market Quarterly.
Mid- to High Single Digit Revenue Growth Expected in U.S. Building Sector:
Most of the building materials companies covered by Fitch Ratings reported higher year-over-year revenues for the first half of 2014. On average, total revenues for the first half are up almost 7% compared with the same period last year. Sales benefited primarily from increased residential and commercial construction activity and, to a lesser extent, improved public infrastructure spending. Fitch expects revenues for this group will grow mid to high single digits for all of 2014 as overall construction activity remains strong.
The full report 'U.S. Leveraged Finance Quarterly' is available at www.fitchratings.com/sectors/Corporate Finance/Leveraged Finance.
For more information, visit: www.fitchratings.com/usleveragedfinance.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Fitch U.S. High Yield Default Insight (Reading the Market Diversity Tea Leaves)' (October 2014);
--'U.S. Leveraged Finance Multiple EV-aluator' (July 2014);
--'Fitch 50 - Structural Profiles of 50 Leveraged Credits' (July 2014);
--'U.S. Leveraged Finance: Road to Recovery (Cross Sector Analysis of Recovery Assumptions and Results)' (April 2014);
--'Leveraged Finance Annual Manual for the Americas' (April 2014).
Applicable Criteria and Related Research: U.S. Leveraged Market Quarterly - Third-Quarter Synopsis
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=795308
Leveraged Finance Annual Manual for the Americas
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=746947
Fitch U.S. High Yield Default Insight (Reading the Market Diversity Tea Leaves)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=757007
U.S. Leveraged Finance Multiple EV-aluator
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749693
Fitch 50 -- Structural Profiles of 50 Leveraged Credits
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685134
Fitch 50 (Structural Profiles of 50 Leveraged U.S. Credits)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=752040
U.S. Leveraged Finance: Road to Recovery (Cross Sector Analysis of Recovery Assumptions and Results)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744855
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