RCI Banque 'BBB/A-2' Ratings Affirmed Despite Renault Downgrade; Outlook Remains Negative

We lowered our long-term rating on carmaker Renault S.A. to 'BB+/B' from 'BBB-/A-3' on April 9, 2020. Renault's captive finance bank, RCI Banque, has strong financial performance and capitalization, with less cyclical revenue than its parent. We expect it will maintain a robust financial profile as it navigates the COVID-19 pandemic. We are therefore affirming our 'BBB/A-2' long- and short-term issuer credit ratings on RCI Banque. The negative outlook indicates that we could lower the ratings on RCI in 2020-2021 if we take a similar action on Renault. It also continues to reflect the risk that the mixed financial performance of Renault's industrial activities and other group challenges could have negative contagion effects on RCI, notably regarding funding costs, access

...April 10, 2020 - We lowered our long-term rating on carmaker Renault S.A. to '##+/B' from '###-/A-3' on April 9, 2020. - Renault's captive finance bank, RCI Banque, has strong financial performance and capitalization, with less cyclical revenue than its parent. We expect it will maintain a robust financial profile as it navigates the COVID-19 pandemic. - We are therefore affirming our '###/A-2' long- and short-term issuer credit ratings on RCI Banque. - The negative outlook indicates that we could lower the ratings on RCI in 2020-2021 if we take a similar action on Renault. It also continues to reflect the risk that the mixed financial performance of Renault's industrial activities and other group challenges could have negative contagion effects on RCI, notably regarding funding costs, access to capital markets, and operating performance. PARIS (S&P Global Ratings) April 10, 2020--S&P Global Ratings said today it affirmed its '###/A-2' long- and short-term issuer credit ratings on France-based...

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