Fitch affirms Peugeot, Renault

Fitch Ratings said it affirmed Peugeot SA's and Renault SA's long-term issuer default ratings and senior unsecured notes at BB+ and Peugeot's short-term issuer default rating at B.

The outlook on Peugeot is positive and the outlook on Renault is stable.

The environment is undoubtedly becoming more challenging for Peugeot and Renault, especially in their domestic European market and uncertainties are growing regarding sales and performance in 2012, Fitch said.

However, both groups are well on track with their cost-savings measures and are in a much better situation than in the second half of 2008 to face a potential slowdown in sales, the agency said.

The environment has deteriorated since the summer with declining consumer and corporate confidence in several European markets, Fitch said.

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