Fitch lowers Peugeot to B+

Fitch Ratings said it downgraded Peugeot SA's long-term issuer default rating to B+ from BB- and affirmed the senior unsecured rating at BB- with a recovery rating of RR3.

The outlook on the long-term issuer default rating is negative.

Fitch said the downgrade reflects its concerns that operating losses at Peugeot's core automotive division and negative free cash flow at group level may not be curbed at the speed and extent assumed by the company and previously expected by Fitch.

The agency said it believes that a return of credit ratios firmly in line with the BB rating category is subject to material execution risk and could be beyond the outlook horizon of the next 12 to 18 months.

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