DBRS: Renault trend stable

DBRS said it confirmed the senior unsecured debt rating of Renault SA at BBB (low).

The trend was changed to stable from negative.

The confirmation incorporates Renault's adequate business profile as an original equipment manufacturer with an established automotive market position in Western Europe and a strong alliance with Nissan Motor Co., Ltd. (BBB (high), according to the agency.

The confirmation also reflects the company's moderate recovery in earnings following significant erosion therein from 2008 through 2009 due to the downturn in the global automotive markets, with Renault's financial profile also being significantly restored through the sale of most of its equity stake in Volvo AB; the proceeds of which were primarily applied toward debt reduction, the agency noted.

DBRS said that significant headwinds persist in Renault's core European market but that they are expected to be offset by the company's ongoing cost-cutting initiatives and, to a lesser degree, by increasing growth in emerging markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.