The chemical sector globally continues battling through the low demand environment amid subdued macroeconomic backdrop and generally cautious consumer confidence. Generally, we expect muted top-line growth as earnings remain pressured in 2025. However, cost-cutting measures could somewhat bump earnings, as could a limited boost in demand as inventories tighten up. Although we expect a bear market to persist across the industry for 2025, many companies' balance sheets are in sufficient shape to weather trough industry conditions. Investment-grade companies especially strengthened from robust markets in 2021-2022. Negative rating actions in 2024 arose most in the deep speculative-grade space and in Europe, where high energy costs, destocking, and overall weak economic conditions have led to underperformance and low plant utilization rates for some issuers. Importantly, key variable to our expectations are policies the incoming Trump administration will implement, particularly pertaining to tariffs, trade, and immigration, as well as what they mean for resilient consumer spending.