Despite a "relatively stable operating environment," credit trends for these and other companies have shifted to "clearly negative" in 2006 from fairly balanced but slightly positive in the previous year, according to S&P.
The ratings agency said the sector has been very active when it comes to mergers and acquisitions, as companies have sought to expand their technical expertise, grow and diversify their product line and geographic reach.
S&P expects another wave of deals, which will "help solidify market positions, harvest profitable and recurring maintenance revenue streams, and position companies in emerging areas of growth" as certain subsections within the industry mature.
