The stable outlook reflects our expectation that, over the next 12-18 months, Faurecia will successfully integrate Clarion and maintain its EBITDA margin at about 9%, despite the soft demand for cars in its main markets (Europe, North America, and China). We also expect that its FFO to debt will stay above 30% and improve toward 35%-40% at the end of 2021. This hinges on a stabilization of demand in 2020, and benefits from ongoing restructuring actions. It also reflects our view that FOCF to debt will remain above 15%. We could lower our rating on Faurecia if it fails to improve its EBITDA margin because of operational setbacks or weaker-than-expected new car sales, leading to an FFO-to-debt ratio below 30%
