Tuesday, April 19, 2016

SP enhances the prospect of Renault’s rating from “stable” to … – The Point

The rating agency Standard and Poor’s (SP) improved Tuesday prospect of automaker Renault, which changes from “stable” to “positive”, with a note held at “BBB-”, due to increased profits and reduced debt of the group.

the profitability of Renault “will continue to improve through additional productivity gains and new model launches,” said SP in release.

the rating agency notes that the gross operating income (EBITDA) rose from 7.6% of turnover in 2014 to 8.8% in 2015 and believes that this margin will reach 9-10% in 2017.

in addition, the repurchase program of shares of its Japanese ally Nissan is expected to bring more than one billion euros to Renault and so “more than compensate cash outflows related to a possible recapitalization of its Russian subsidiary Avtovaz “, whose sales slumped last year, added SP.

gbh / cb / Lys

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04/19/2016 5:01:31 p.m. – Paris, April 19, 2016 (AFP) – AFP © 2016

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