S&P ups Peugeot view to stable

Standard & Poor's said it revised the outlook on Peugeot SA to stable from negative and affirmed its BB+ long-term and B short-term corporate credit ratings.

The agency also said it revised the outlook to stable from negative on Peugeot's fully owned captive finance subsidiary, Banque PSA Finance, and affirmed its BBB long-term counterparty credit rating.

The outlook revision reflects a view that Peugeot's 2010 operating performance will likely improve versus 2009 results, S&P said.

This will support the strengthening of its credit ratios to levels consistent with the current ratings, the agency said.

The ratings reflect the group's fair business risk profile and significant financial risk profile, S&P added.

Its business risk profile is driven by low profitability linked to exposure to the cyclical, highly competitive and structurally oversupplied auto industry, the agency said.

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