BONDS: S&P raises its earnings expectations for Renault in 2022 | Photo credits: otomobil / Shutterstock.com
PARIS (Agefi-Dow Jones)–S&P Global Ratings on Friday raised its forecast for Renault’s 2022 fiscal year, whose first-half results signaled an upturn in financial performance.
The rating agency now expects the automaker’s adjusted gross operating profit (EBITDA) margin to reach 7% this year, down from a previous forecast of 5% to 6%. Also, S&P Global Ratings forecasts free operating cash flow of around 200 million euros for the group’s automotive activities in 2022, whereas it previously expected a negative flow.
The increase in these estimates is based on Renault’s ability to increase the prices of its vehicles and to promote the sale of the most profitable models, in a context of decreasing volumes, explains the agency. Its long-term credit rating for the automaker is maintained at “BB+” and remains with a “negative” outlook.
Around 2 p.m., Renault shares rose 0.8% to 30.70 euros. Published on July 29, the diamond group’s half-year results exceeded analysts’ expectations and enabled its management to raise its objectives for the full year.
-Dimitri Delmond, Agefi-Dow Jones; +33 (0)1 41 27 47 31; [email protected] ed: LBO
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August 12, 2022 08:07 ET (12:07 GMT)