Moody's lowers Peugeot

Moody's Investors Service said it downgraded Peugeot SA's long-term senior unsecured ratings to Ba1 from Baa3 and its short term senior unsecured ratings to not-prime from prime-3.

The agency also downgraded senior unsecured convertibles/exchange bond/debenture to Ba1 from Baa3, senior unsecured medium-term note program to provisional Ba1/not-prime from provisional Baa3/prime-3, senior unsecured medium-term note program to provisionalBa1/not-prime from provisional Baa3/prime-3 and senior unsecured regular bond/debenture to Ba1 from Baa3.

This concludes a review for downgrade that began in February.

The agency also said it assigned Ba1 corporate family and probability of default ratings to Peugeot.

The outlook is negative.

The agency also said it downgraded GIE PSA Tresorerie's senior unsecured commercial-paper rating to not-prime from prime-3, senior unsecured regular bond/debenture to Ba1 from Baa3.

The downgrades reflect Peugeot's fiscal year 2011 results, which have been well below expectations, Moody's said.

The downgrade further incorporates the company's challenges to improve its financial metrics over the short- to medium-term following a severe deterioration in 2011, Moody's said.

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