Standard & Poor’s raises a notch note Renault – Le Point

The Standard & amp financial reporting agency <- - col article!>; Poor’s does not seem at all concerned about the rise of the French state to Renault. It has announced on Wednesday that it fell a notch note of the French carmaker Renault’s long-term debt from “BB +” to “BBB-”. The decision, which comes with a stable outlook, puts the automaker in the category of borrowers without risk (investment). SP believes that Renault will maintain a good borrower profile in the next two years and will gradually improve the profitability of its core business.

“Renault has significantly improved its financial profile in recent years,” said SP, highlighting the recovery of the automotive market in Western Europe and expenditures in line with historical trends. SP is also expected that the group maintains a disciplined approach to acquisitions and its dividend policy.

Savings Plan

“We believe that Renault’s profitability will continue to improve, despite weak Russian economies and Latin America, “said the agency. “We see risk the side of emerging markets, but we believe that Renault takes advantage of multiple airbags, including the weakness of the euro and the future benefits of current savings plan,” she says.

The perspective attached to this note is stable thanks to expectations for improved profitability and positive cash flow over the next two years. However, this note comes a few days of the General Meeting of April 30 looming stormy with the rise of the state to 19.74% of the capital. This maneuver would allow it to block certain decisions that displease him board.

Fitch, for its part, had raised Renault’s rating in November for the same reasons (from BB + BBB-), while Moody’s maintained its rating (“Ba1″), but combining it with a perspective “positive”.