Fitch: Peugeot view to stable

Fitch Ratings said it revised the outlook on Peugeot SA's long-term issuer default rating to stable from positive and affirmed the rating at BB+.

The agency said it reviewed its expectations for the group through 2013 and now believes that an upgrade is unlikely in the timeframe generally covered by a positive outlook, which is about 12 to 18 months.

The outlook revision also reflects the deteriorating environment, especially in Peugeot's key markets of France, Spain and the United Kingdom, pointing to lower-than-expected sales in 2012 and further pressure on vehicle prices, Fitch said.

Weak corporate and consumer confidence, rising unemployment in some countries and persistent uncertainty regarding the sovereign debt crisis are strong negative factors as far as new vehicle sales are concerned, the agency said.

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