The sector outlook for U.S. healthcare and pharmaceutical companies in 2022 is neutral, according to Fitch Ratings. Healthcare demand should remain durable and headwinds to profitability should be manageable in the context of the ratings.
The pandemic has reinforced the key tenets that have historically underpinned healthcare ratings. That is, demand is fairly durable, the industry has a solid track record of defending profitability, and capital allocation has a more immediate impact on credit profiles than trends in operating fundamentals. Regulation and legislation will continue to influence credit profiles over the medium term with proposed drug price legislation as the most recent example. Read more.
