UK specialist manufacturers outperformed the rest of the country’s manufacturing sector by at least 2% in the equity markets and show parallel signs of more robust credit health, according to research conducted by S&P Capital IQ.
The report – authored by Solutions Architect Pavle Sabic – examines correlations between credit health and strong equity market results over the past year ending February 8th 2012.
A total of 29 specialist manufacturers, makers of unique and essential products such as metal presswork, industrial x-ray units and pipe and tube assemblies, outperformed other constituents in the S&P U.K. Broad Market Index (BMI) Industrials Index, which fell by 2.14% in the year-long period.
The research also includes analysis of the 29 outperformers’ operational, solvency, and liquidity scores from S&P Capital IQ’s Credit Health Panel and a quantitative creditworthiness score from its proprietary Credit Model (CM).
“Tools like S&P Capital IQ’s Credit Model and Credit Health Panel allow us to examine the underlying strengths and weaknesses of corporates,” says Sabic. “We believe their strong showing in these areas is a significant factor behind the continued success of UK specialist manufacturers.”
Further analysis by CreditModel’s proprietary stress-testing functionality demonstrates how sensitive the CreditModel score is to changes in each of the eight financial inputs. This “sensitivity ranking” indicates the companies may be resilient to downturns in their financials.
U.K. Manufacturing: Standout Industries And Companies is part of an ongoing series of research reports provided by the Solutions Architects team of S&P Capital IQ and made available over S&P Global Credit Portal and standardandpoors.com.