Moody’s lowers Renault

Moody’s Investors Service said it downgraded Renault SA’s corporate family rating to Ba2 from Ba1, the probability of default rating to Ba2-PD from Ba1-PD and the ratings on the group’s senior unsecured notes to Ba2 from Ba1. The outlook changed to negative from ratings under review.

This rating action ends a review for possible downgrade that began on March 25, Moody’s said.

“The downgrade of Renault’s ratings to Ba2 reflects Moody’s view that the downturn brought on by the coronavirus will cause a pronounced weakening in Renault’s credit metrics. We expect that during 2020 Renault’s Moody’s adjusted EBITA margin could fall below -3%, compared with an already very weak 0.8% in 2019,” the agency said in a press release.

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