UK Markets closed

Moody's changes Renault's outlook to "stable" from "negative"

FILE PHOTO: 2022 Paris Auto Show

PARIS (Reuters) - Moody's Investors Service said on Friday it changed the outlook on French carmaker Renault's ratings to stable from negative to reflect prospects of improved profitability from its strategic plan.

"The outlook change to stable reflects Renault's improved profitability in the first half of 2022, and the expectation of further improvements driven by the execution of the strategic plan Renaulution," Matthias Heck, a Moody's vice president senior credit officer and lead analyst for Renault said in a statement.

Moody's also affirmed the corporate family rating (CFR) of Ba2, citing expectation "Renault's credit metrics will improve to comfortable levels required for the current rating category in 2023, notwithstanding the increasingly challenging macroeconomic environment and the execution risks linked to the new strategic plan."

(Reporting by Dominique Vidalon; Editing by Benoit Van Overstraeten)