In Year of the Snake, Will Industrials Get Stung?: 2025 Credit Outlook

2025 is shaping up to be M&A and portfolio repositioning as nominal growth, our base case for 2025, has traditionally led to years of elevated acquisition activity. Balance sheets are healthy, adding fuel for dealmaking, with more than $170 billion of debt capacity. Honeywell, Fortive, Emerson and Parker-Hannifin are focus issuers, while consensus expectations at 3M look particularly aggressive.