...Resilient Under Pressure: The ratings reflects Renault SA's resilient profitability and cash generation in a difficult environment, especially for volume manufacturers. Group operating margins increased to 3.9% in 2014 and Fitch Ratings expects further improvement towards 5% by end-2016, 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. In particular, we expect adverse conditions in Russia and Latin America in 2015, although this should be offset by an improving environment in Europe. 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-2014, providing the group with more flexibility...
