Peugeot debt rating cut after share issue,GM deal

Reuters ^ | Mar 1, 2012 | Reuters

[mdittmar]

(Reuters) - PSA Peugeot Citroen's (PEUP.PA) debt was cut to junk status by credit ratings agency Moody's on Thursday, after the French automaker announced a 1 billion euro ($1.34 billion) share issue and an alliance with U.S. peer General Motors (GM.N).

Moody's Investors Service lowered Peugeot's rating by one notch to Ba1, the highest so-called "speculative" grade with a negative outlook.

The cost of implementing the alliance will hurt Peugeot's earnings in the short term, the agency warned, and cooperation may not produce the savings expected later.

"Moody's notes that past mergers and alliances in the automotive industry have often not resulted in the anticipated competitive advantage and improved performance," it said.

[lacrew]

If you tie two bricks together, they fall just as fast.

[Pollster1]

Peugeot has never been high on my list of potential car makes, but they just entered my permanent boycott list. I am boycotting GM and Chrysler forever because of the disgustingly corrupt bankruptcy and bailout, which stiffed the rightful claimants on GM assets in clear violation of multiple laws. Now that Peugeot has linked with that criminal organization, Peugeot is dead to me too, just like Government Motors.

[wjcsux]

later

[wjcsux]

Peudeot’s debt rating finally got down to the quality of their cars. The cars have been crap forever. All of the great French automobile manufacturers disappeared with the start of the French Socialist government after WW II. Voisin, Talbot-Lago and Delage were three of the best cars ever made. France, along with every other Socialist state, killed of their great companies and kept the crap.

[Texas resident]

Unbelievable.

So I guess we get to bail out another failure.
Peugeot? What next, bring back the Jugo?