Fitch Ratings upgrades Renault’s credit rating from BB+ to BBB-

Article by Christian A., on November 15, 2014

Fitch Ratings has upgraded Renault’s credit rating by one level from BB+ to BBB-, which is equivalent to investment grade. According to the rating’s group, Renault’s profitability is improving as it expands deliveries outside Europe through low-cost vehicles from its Dacia brand.

Thomas Corcoran, an analyst at Fitch, said in a report that the outlook for Renault is stable, which means there should be no change in the carmaker’s ratings anytime soon. He remarked that ongoing and successful diversification has resulted to an increasing share of sales outside Europe.

He noted that the success of the Datsun brand’s entry range is key to offsetting drops in sales of the core Renault models. He added that Renault’s vehicles profitability "is higher than the automotive average."

Morgan Stanley estimates Dacia having a 9-percent operating margin -- a level or profitability usually found in luxury carmakers.

For the third quarter of 2014, Renault posted a 7-percent jump in revenue to EUR8.53 billion ($10.6 billion), thanks to strong performances by Dacia Duster SUV and Sandero hatchback and the Renault Captur small crossover.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries