Research Update: RCI Banque 'BBB/A-2' Ratings Affirmed Despite Renault CreditWatch Negative Placement; Outlook Negative

On Feb. 19, 2020, S&P Global Ratings placed the 'BBB-/A-3' long- and short-term issuer credit ratings on French carmaker Renault on CreditWatch with negative implications. However, we are affirming our 'BBB/A-2' long- and short-term issuer credit ratings on Renault's captive finance bank RCI Banque (RCI). The affirmation is supported by RCI's strong financial performance in 2019 and our expectation that it will continue to maintain a stable and solid financial profile, with less cyclical revenue than its parent. The negative outlook continues to reflect the risk that the mixed financial performance of Renault's industrial activities and other group challenges--such as tightening carbon dioxide regulations and its strategy with alliance partners Nissan and Mitsubishi--could have negative contagion effects on RCI, notably

...- On Feb. 19, 2020, S&P Global Ratings placed the '###-/A-3' long- and short-term issuer credit ratings on French carmaker Renault on CreditWatch with negative implications. - However, we are affirming our '###/A-2' long- and short-term issuer credit ratings on Renault's captive finance bank RCI Banque (RCI). - The affirmation is supported by RCI's strong financial performance in 2019 and our expectation that it will continue to maintain a stable and solid financial profile, with less cyclical revenue than its parent. - The negative outlook continues to reflect the risk that the mixed financial performance of Renault's industrial activities and other group challenges--such as tightening carbon dioxide regulations and its strategy with alliance partners Nissan and Mitsubishi--could have negative contagion effects on RCI, notably regarding funding costs and operating performance....

Research Update