Renault: stock falls further after Moody's downgrade

(CercleFinance.com) - The Renault share is continuing to fall this morning, down about 2% in the first hour of trading.

Yesterday evening rating agency Moody's downgraded Renault's long-term credit rating to Ba1, while maintaining a stable outlook.

Based on 2020, Moody's anticipates a further decline in the group's operating margin and a continued weakness in the market environment. "We do not expect that Renault will be able to restore healthy operating margin levels inthe medium term," Moody's said.

"Renault's automotive operating income margin has deteriorated to 1.7% in2019 from 3.3 % in 2018 (4.7% in 2017) and is significantly below ourexpectations for the Baa3 rating category".

Moody's anticipates an automotive operating margin that will continue to fall below 1.0% in 2020 and which will remain under pressure over the long term.


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