FILE PHOTO: The logo of French carmaker Renault is seen before the company's 2019 annual results presentation at their headquarters in Boulogne-Billancourt, near Paris, France, February 14, 2020. REUTERS/Gonzalo Fuentes/File Photo
PARIS - Renault’s shares fell on Wednesday after credit rating agency Moody’s cut its rating on the French carmaker’s debts to “junk” status. Renault shares were down 2.3% to 30.2 euros in early trading, its lowest level since mid-2012, making it among the worst performing stocks on Paris' benchmark CAC-40Moody’s late on Tuesday cut its credit rating on Renault to Ba1 status after the company posted weak annual results.“The downgrade to ‘Ba1’ was triggered by Renault’s substantially weakened operating performance reported for the year 2019 to a level no longer commensurate with the Baa3 rating category,” wrote Moody’s.
“Based on the company’s 2020 guidance anticipating a further decline in the group’s operating margin and the continuing weakness of the market environment, we do not expect that Renault will be able to restore healthy operating margin levels in the medium term,” the rating agency added.“Renault is set to remain income poor for a while,” wrote Jefferies, which kept an ‘underperform’ rating on the stock.
jpr007 Wow ... just wow Any existential angst kicking in for anybody?
ValueAnalyst1
Wow .that sounds like a junk dear. 🤔🗽
The cars they make are junk too.
Could this be classed as a type of insider trading as Moodys has an impact on share prices and company value?
'we do not expect that Renault will be able to restore healthy operating margin levels in the medium term' . That it is bad...
Wow Pink sheet
jpr007