Fitch revises Renault view to stable

Fitch Ratings said it revised Renault SA's outlook to stable from negative, while affirming the automotive group's long-term issuer default rating at BB.

“The outlook change reflects that Renault's key credit metrics have stopped deteriorating, although we believe that they will remain weak for the ratings for at least a couple of years. We expect free cash flow (FCF) to be moderately negative in 2021, mostly as a result of remaining pressure on working capital. However, we expect Renault's automotive operating margin to become positive again, due to a stronger-than-expected recovery in revenue and a successful implementation of the group's cost-saving measures,” Fitch said in a press release.

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