...Progress in Restructuring: Peugeot S.A. (PSA) was upgraded in August 2015, reflecting a continuous improvement in profitability and cash generation. Measures to streamline the product portfolio, improve pricing power and profitably expand international operations as well as cash-preservation and cost-reduction measures have reduced the breakeven point and will further support profitability. Fitch Ratings projects PSA's automotive operating margin will increase to more than 3% in 2015 from about breakeven in 2014 and negative 2.9% in 2013. Recovering FCF: Free cash flow (FCF) was robust at EUR0.9bn in 2014 and EUR2.7bn in 1H15, in contrast with the cash absorption of EUR1.3bn in 2013 and EUR3.3bn in 2012. It was supported by the strengthening of underlying funds from operations (FFO), substantial EUR1bn and EUR0.9bn inflows from working-capital improvements in 2014 and 1H15, respectively, and controlled investments. We expect a reversal of working capital and higher capex to absorb FFO in...
