Continued appreciation of the U.S. Dollar (USD) relative to the euro would affect net exports, with knock-on effects for GDP growth and several corporate industrial sectors, according to a new study by Fitch Ratings and Oxford Analytica.

"Central bank efforts to boost growth in developed markets may become more complicated, and industrial corporates could feel the pinch assuming monetary policies continue to diverge," says Eileen Fahey, Fitch Ratings' Chief Credit Officer.

The median company in Fitch's sample of industrial corporates could see revenue shifts of 2-3% annually based on a 20% currency swing in either direction between the USD/Euro, though more export-driven companies and industries may be subject to substantially more revenue volatility.

"Currency movements could further impact revenues in 2016 for companies with a significant amount of revenue tied to exports, particularly those in the capital goods, natural resources and oil & gas space which already face demand pressures from slower global growth and low commodities prices," says James Batterman, Managing Director, Credit Policy.

To date, companies in the eurozone have been the primary beneficiary of a stronger USD, primarily via stronger imports. However, further depreciation of the euro could drive stronger Eurozone net exports through 2017, supporting corporate revenues and earnings. Russian steel ore/potash companies, for example, have pocketed significant domestic receipts despite low commodity prices.

Other industrial sectors included in Fitch's study include autos, transportation, and chemicals.

The full report, "The Strong USD: Implications from Europe vs. the U.S.," is available at www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

The Strong USD: Implications for Europe and the U.S. (Background Analysis of the Impact on the Broader Economy and Nonfinancial Corporates)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=875782

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.