Renault is struggling to reassure investors. The manufacturer, whose share price has fallen by 25% since early 2020 (this is the worst performance of the CAC 40), is also in the sights of rating agencies. S&P said Wednesday that it plans to downgrade Renault's long-term rating in the speculative issuer category. Moody's downgraded him a notch to Ba1 on Tuesday. A sanction for the group's poor performance, in the red in 2019, for the first time since 2009. Renault, which is suffering from a drop in sales and profitability, did not reassure by anticipating for 2020 a further drop in its profitability.
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This is the point that worries Moody's. "According to the forecasts published for 2020 by the company, which anticipates a further decline in the operating margin, and the weak market environment, we do not expect Renault to be able to find correct levels of margin operational in the medium term, ”points out the agency. S&P is concerned about the same elements. "While we consider that Renault has kept good financial flexibility thanks to comfortable liquidity reserves, several operational challenges could still weigh on its generation of available cash over the next 18 to 24 months," the agency explains.
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To rectify the situation, Renault has announced that it intends to reduce its structural costs by at least 2 billion euros in three years. He is expected to present the details of this plan in May. S&P said that the agency would give its decision on its negative surveillance before the end of May, after having notably evaluated the details of this plan. This deterioration would be a blow for Renault, as it would increase its access to credit.
Even if these files are not linked, the judicial investigation into Carlos Ghosn, the ex-CEO of Renault-Nissan suspected of misuse of corporate property, experienced a twist on Wednesday. An investigating judge has just been seized of the file. Friday, the businessman will claim before the industrial tribunal a retirement indemnity of 250,000 euros, which Renault refuses to pay him.