L'agence de notation Standard & Poor's a relevé mercredi d'un cran la note de crédit de Peugeot (>> PEUGEOT) après "l'amélioration des performances opérationnelles" du constructeur automobile en 2015. S&P assigne désormais une note de "BB" à Peugeot, contre "BB-" auparavant, en l'assortissant d'une perspective "positive". L'agence de notation a souligné qu'elle pourrait continuer à relever la note de Peugeot si le groupe français parvenait à "maintenir sa rentabilité élevée et sa politique financière prudente lors des 12 prochains mois en dépit d'une érosion de sa base de revenus". 


  (jerome.batteau@wsj.com) ed: ECH 

-0- 
 
 
The following is a press release from Standard & Poor's: 
 
     -- Peugeot posted a substantially better operating performance in 2015, 
which demonstrates a significant improvement of its business profile, in our 
view. 
     -- Moreover, the company's financial profile has strengthened markedly in 
recent years. 
     -- We are raising our long-term rating on Peugeot to 'BB' from 'BB-' and 
affirming the 'B' short-term rating. 
     -- The positive outlook reflects the possibility of a further upgrade if 
Peugeot maintains its high profitability and prudent financial policy over the 
next 12 months, despite an eroding revenue base. 
 
PARIS (Standard & Poor's) Feb. 24, 2016--Standard & Poor's Ratings Services 
today raised its long-term corporate credit ratings on French auto 
manufacturer Peugeot S.A. and subsidiary GIE PSA Tresorerie to 'BB' from 
'BB-'. The outlook is positive. 
 
At the same time, we affirmed our 'B' short-term corporate credit ratings on 
Peugeot and GIE PSA Tresorerie. 
 
We also raised our issue rating on the senior unsecured notes issued by 
Peugeot and GIE PSA Tresorerie to 'BB' from 'BB-'. The recovery rating on 
these notes is '3', indicating our expectation of meaningful recovery in the 
lower half of the 50%-70% range in the event of a payment default. 
 
The upgrade reflects our view that Peugeot's lower debt and successful 
restructuring of its automotive division should enable it to sustain higher 
credit ratios, despite its decreasing market share. We think that the 
company's business profile has significantly improved over the past two years. 
The automotive division reported a recurring EBIT margin of 5% in 2015, 
compared with 0.2% in 2014 and negative 2.9% in 2013. Although Peugeot 
benefited from a supportive operating environment last year, notably the 
significant rebound of the European car market and favorable exchange rates, 
we think that the improvement in profitability is mainly structural. The 
company has increased productivity by cutting production and procurement 
costs, and it lowered its break-even point to 1.6 million cars at year-end 
2015 from 2.6 million in 2013. It has also successfully increased its prices. 
 
On the downside, Peugeot remains dependent on Europe, where it generates more 
than 60% of its sales. The company's European market shares have been 
declining since 2010 and may reduce further because the pipeline of new 
vehicles seems relatively weak. Additionally, Peugeot's capital expenditures 
and research and development costs appear low relative to peers' and may 
constrain future growth, despite Peugeot's cooperation agreements with several 
automakers. Moreover, Peugeot keeps posting high restructuring expenses, which 
reached EUR793 million in 2015, after EUR761 million in 2014 and EUR465 million in 
2013. 
 
Peugeot's financial profile has strengthened markedly in recent years. Based 
on our preliminary calculations, funds from operations (FFO) to debt exceeded 
60% at the end of 2015, a sharp improvement from the 4% low in 2013. Over the 
past two years, we estimate that the company nearly halved its adjusted debt, 
thanks to a capital increase, internal cash flow generation, and a significant 
reduction in working capital. Nonoperating cash inflows should support a 
further decrease in debt over the coming years. These inflows include 
exceptional dividends from Peugeot's captive finance subsidiary Banque PSA, 
proceeds from warrants granted to Peugeot's shareholders at the time of the 
2014 capital increase, and funds from the sale of subsidiary Faurecia's 
exteriors business. 
 
We apply a negative modifier to our 'bb+' anchor for Peugeot, owing to our 
comparable ratings analysis. This reflects our view that the performance 
improvements are recent and follow a period of much weaker and volatile credit 
protection measures than peers'. In our view, the company still lacks a track 
record of financial policy commitments regarding the use of its sizable cash 
holdings to reduce debt. 
 
The positive outlook indicates a one-in-three possibility that we will raise 
our long-term ratings on Peugeot by one notch within 12 months if operating 
performance improves sustainably. We believe the company can maintain high 
profitability over the coming year, despite an eroding revenue base. The 
outlook also factors in our view that Peugeot's financial policy will likely 
remain prudent and, in particular, that the group will not use its sizable 
cash position to finance large acquisitions. 
 
We may raise our ratings if Peugeot established a firm track record of 
stronger credit ratios, with the Standard & Poor's-adjusted FFO-to-debt ratio 
sustainably above 45%. This would lead us to revise our financial risk profile 
assessment to modest from intermediate. Such a scenario could unfold if, for 
instance, Peugeot only moderately increases shareholder remuneration and does 
not make large debt-financed acquisitions. 
 
We could revise the outlook to stable if Peugeot was unable to preserve an 
adjusted FFO-to-debt ratio above 45%, for example, as a result of a more 
aggressive financial policy or a meaningful decline in earnings. We would also 
revise the outlook to stable if the automotive operations' operating margin 
fell sharply because of declining sales or inability to contain costs. 
 
RELATED CRITERIA 
     -- Methodology: The Impact Of Captive Finance Operations On Nonfinancial 
Corporate Issuers, Dec. 14, 2015 
     -- Methodology And Assumptions: Liquidity Descriptors For Global 
Corporate Issuers, Dec. 16, 2014 
     -- Revised Revolver Usage Assumptions For Recovery Analysis In Corporate 
Ratings, Nov. 20, 2014 
     -- Key Credit Factors For The Auto And Commercial Vehicle Manufacturing 
Industry, Nov. 19, 2013 
     -- Corporate Methodology, Nov. 19, 2013 
     -- Corporate Methodology: Ratios And Adjustments, Nov. 19, 2013 
     -- Group Rating Methodology, Nov. 19, 2013 
     -- Methodology: Management And Governance Credit Factors For Corporate 
Entities And Insurers, Nov. 13, 2012 
     -- Use Of CreditWatch And Outlooks, Sept. 14, 2009 
     -- Criteria Guidelines For Recovery Ratings On Global Industrial Issuers' 
Speculative-Grade Debt, Aug. 10, 2009 
 
Certain terms used in this report, particularly certain adjectives used to 
express our view on rating relevant factors, have specific meanings ascribed 
to them in our criteria, and should therefore be read in conjunction with such 
criteria. Please see Ratings Criteria at www.standardandpoors.com for further 
information. Complete ratings information is available to subscribers of 
RatingsDirect at www.globalcreditportal.com and at spcapitaliq.com. All 
ratings affected by this rating action can be found on Standard & Poor's 
public Web site at www.standardandpoors.com. Use the Ratings search box 
located in the left column.  Alternatively, call one of the following Standard 
& Poor's numbers: Client Support Europe (44) 20-7176-7176; London Press Office 
(44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; 
Stockholm (46) 8-440-5914; or Moscow 7 (495) 783-4009. 
 
Primary Credit Analyst: Vincent Gusdorf, CFA, Paris (33) 1-4420-6667; 
                        vincent.gusdorf@standardandpoors.com 
Secondary Contact: Alex P Herbert, London (44) 20-7176-3616; 
                   alex.herbert@standardandpoors.com 
Additional Contact: Industrial Ratings Europe; 
                    Corporate_Admin_London@standardandpoors.com 
 
 
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  February 24, 2016 09:44 ET (14:44 GMT)
Valeurs citées dans l'article : PEUGEOT