Capital Structure and Rating Advisory Insights for 2026

This technical report presents insights on capital allocation strategies for 2026, focusing on the analysis of 1,080 companies across 19 corporate sectors from the S&P Global 1200 Index and Hang Seng Index. It outlines the current state of corporate balance sheets, noting improvements in leverage and liquidity, which provide firms with the capacity to absorb economic shocks while selectively deploying capital. The report highlights the ongoing trend of working capital optimization as a significant opportunity for enhancing return on invested capital (ROIC), with approximately US$2.6 trillion still tied up in cash conversion cycles. Additionally, it discusses the resilience of growth across emerging and developed markets, driven by improved country risk and the impact of AI adoption on financing needs. The document emphasizes the importance of strategic financial policy advisory in navigating capital structure decisions and managing risks in a changing economic landscape.