Most corporate bond issuers have some ability to pass rising costs on to customers via pricing and, to a lesser extent, reducing costs with greater operating efficiency, says Fitch Ratings in a new report.
The service is predicting inflationary pressures are likely to linger into 2022 and potentially threaten US corporate margins from the sharp uptick in demand after reopening from the coronavirus lockdowns and supply-chain challenges.
For inflation, Fitch has revised its expectation to 4.4% for all of 2021 from its forecast in September and 2.7% for 2022 from the estimate it gave in June.
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