Moody’s raises Renault ratings

Moody’s Investors Service said it upgraded Renault SA’s senior unsecured and corporate family ratings to Ba1 from Ba2 and its probability of default rating to Ba1-PD from Ba2-PD as well as its EMTN program to (P) Ba1 from (P) Ba2.

"The rating upgrade reflects Renault's continued improvement in profitability, driven by positive pricing and product mix effects, and the strong free cash flow generation, which allows Renault to reduce debt, including the full reimbursement French state guaranteed loan in the first half of 2023," said Matthias Heck, a Moody's vice president, senior credit officer and lead analyst for Renault, in a press release.

The agency noted Renault’s automotive revenues rose by 27% in the first half of 2023 and its automotive sales margin widened to a historically high level of 6.2% in the first half of 2023, compared to 2.1% in the first half of 2022 and 4.2% in the second half of 2022.

The outlook is stable.

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