S&P shifts Faurecia view to stable

S&P said it revised Faurecia SE’s outlook to stable from positive and affirmed the BB ratings on the issuer and its debt.

“Prolonged market weakness and operating challenges will hamper Faurecia's credit metric improvement in 2021. Global automotive production is set to only modestly recover by 1%-3% in 2021 from last year's volume trough as a result of the industry's chip shortage and other related supply chain bottlenecks. We anticipate this will limit Faurecia's revenue growth to 3%-5% in 2021, amplified by its exposure to more volume-driven original equipment manufacturers (OEMs) and to the more affected European market (48% of 2020 sales),” the agency said in a press release.

S&P said it forecasts Faurecia will keep FFO to debt above 15% and FOCF to debt above 5% in 2022 and 2023.

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