...Resilient Under Pressure: The upgrade by one notch in November 2014 reflects the resilience of Renault SA's profitability and underlying cash generation in a difficult environment, especially for volume manufacturers. Group operating margins increased to over 3% in 2013 and Fitch Ratings expects further improvement, including a strengthening of core automotive operations. Renault's restructuring measures have streamlined its cost structure, lowered its breakeven point and made it more resistant to a possible downturn. Stronger Credit Metrics: Net financial debt has fallen substantially since 2009 as a result of positive free cash flow (FCF) and asset sales, while earnings and funds from operations (FFO) rebounded in the same period. Net leverage has declined continuously since end-2009, from 5.6x, to less than 0.5x at end-June 2014, providing the group with more flexibility to go through the sector's next cyclical downturn. Automotive operating margins and FCF have remained positive since...
