... Ratings' upgrade of Peugeot S.A. (PSA) to `BB+'/Stable in November 2016 reflects our expectation that the improvement in PSA's key credit metrics, reflected in the solid results posted by the group in 2015, is sustainable. We view PSA's financial profile as being in line with a low investment-grade rating but believe that the rating remains constrained by a business profile more adequately positioned at the high end of the 'BB' category. In particular, the group remains reliant on Europe and has modest global scale. Successful Restructuring: Measures to streamline the product portfolio, to improve pricing power and profitably expand global operations, as well as cash preservation and cost reduction have reduced the breakeven point and will further support profitability. PSA's automotive operating margin increased to 5% in 2015 from 0.2% in 2014 and Fitch Ratings projects that it will remain above 4.5% through to 2018. Positive FCF: We expect...
