DBRS revises PSA Peugeot Citroen to stable

DBRS said it confirmed the issuer rating of PSA Peugeot Citroen at BB and its senior unsecured debt rating at BB, in line with the associated recovery rating of RR4 (unchanged).

The trend was changed to stable from negative, recognizing the improved earnings and cash flow generation of the company’s industrial operations in conjunction with last year’s capital increase of €3 billion; these measures effectively restoring PSA’s financial profile to levels commensurate with the ratings.

Moreover, while Europe remains dominant, the company’s recent progresses in China, (which are likely to continue in light of projected ongoing regional industry growth and Dongfeng Motor Group now owning a 14% stake in PSA), are nonetheless serving to lessen its dependence on that continent, DBRS said.

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