Dec 19 (Reuters) - Renault Group's long-term credit rating has been raised to "BBB-" by S&P Global Ratings, bringing the automotive group's rating back into investment-grade territory for the first
Renault Achieves Investment-Grade Rating with S&P Upgrade
Dec 19 (Reuters) - Renault Group's long-term credit rating has been raised to "BBB-" by S&P Global Ratings, bringing the automotive group's rating back into investment-grade territory for the first time in five years.
The improved rating is based on an expectation that Renault will be able to generate resilient free operating cash flow over the next couple of years, despite tough European market conditions, thanks to significant improvements in management of its model mix and costs over the last two years, S&P said in a statement late Thursday.
It said the firm's product pipeline and expansion overseas would help grow volumes, while its range of different energy options - from electric vehicles to hybrids and combustion engines - would ensure volume stability despite the uneven adoption of EVs across different markets.
It also expects Renault to maintain adjusted EBITDA margins of around 6% and free operating cash flow to sales of about 2%.
Renault had been relegated to the "junk", or speculative, category in April 2020 following deteriorating financial results after the fall of former CEO Carlos Ghosn.
(Reporting by Jakob Van Calster in Gdansk, Gilles Guillaume in Paris;Editing by Elaine Hardcastle)
