Peugeot Cut by Ratings Services as Company Burns Cash

PSA Peugeot Citroen, Europe’s second-largest automaker, was lowered to two levels below investment grade by all three main rating services over the automotive division’s widening losses and continued cash burn.

Moody’s Investors Service, Standard & Poor’s Ratings Services and Fitch Ratings cut Peugeot’s long-term default rating, already junk, by one level after the Paris-based company reported results yesterday. Peugeot’s debt was lowered to Ba2 from Ba1 at Moody’s, and to BB from BB+ at S&P and Fitch.