Fitch lifts Peugeot, GIE PSA views to positive

Fitch Ratings said it revised Peugeot SA's and GIE PSA Tresorerie's outlooks to positive from stable and affirmed the companies' long-term issuer default ratings at BB+.

PSA's and GIE PSA Tresorerie's senior unsecured rating also were affirmed at BB+.

The positive outlook reflects the strong and better-than-expected 2017 results, including the consolidation of loss-making Opel and projections that credit metrics will remain broadly commensurate with a low investment-grade rating in the medium-term, Fitch said.

PSA's business profile is somewhat weaker than its investment-grade peers, the agency said, but this is mitigated by the continuous strengthening of the group's financial profile since 2014.

The ratings reflect stronger results in the past three years and an expectation that the improvement in key credit metrics is sustainable, Fitch said.

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