In a new report, KBRA examines trends in U.S. corporate margins, which are normalizing into a post-stimulus environment. Operating margins among listed firms had risen to or near record levels in 2022 as improved pricing power more than offset rising production costs. While that positive operating leverage runs the risk of flipping over in 2023, KBRA expects firms in the aggregate to maintain margins at or above long-term averages, which should cushion to some extent the effects of economic contraction. Firms are also benefiting from the well-telegraphed nature of the downturn, which allows for a more proactive approach to adjusting cost structures and pricing strategies.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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