���������ֳ�

���������ֳ�’s Sector Outlook: Improving ���������ֳ� forecasts a partial rebound in 2021 from the highly variable but generally negative market trends of 2020. Most companies benefited from cheaper feedstock while facing various degrees of end-market demand pressure, from a double-digit drop in auto to flat-to-rising in food and agriculture. We expect most countries to post a mid-to-high single-digit GDP recovery in 2021, with developed countries staying below the 2019 GDP level. Oversupply issues in commoditised chemicals from before 2020 remain present and will take at least two years to be absorbed by recovering demand. Oversupply is exacerbated by increased cost-competitiveness of marginal producers, bolstered by lower oil and gas prices, and reflected in our 20%-25% downward revision for European 2021 price benchmarks. Rating Outlook: Stable Most of the ratings in the sector have a Stable Outlook. Of 20 companies under public coverage, only three have a Negative Outlook and only one has a Positive Outlook. Negative rating actions are linked to uncertainties around companies’ abilities to deleverage in a highly volatile market by end-2021. Positive rating actions may occur should companies achieve sustained deleveraging within the positive rating guidelines, prioritising it over or at least balancing it with capex or dividend distributions.