Renault’s Russia Exposure Could Derail Its Recovery, Fitch Says
- Loss related to operations in country could lead to cash burn
- Carmaker already has ‘minimal’ headroom, credit rater says
Robotic arms spray the body shell of a Renault Captur crossover sport utility vehicle inside the Renault automobile plant in Moscow.
Source: Bloomberg
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Renault SA’s turnaround could be jeopardized by the French automaker’s exposure to the Russian market, according to Fitch Ratings.
Potential losses from operations in Russia could lead Renault to burn cash for the next two years and delay its recovery from the pandemic, the credit rater said in a report. The company has the highest exposure to the country among European automakers and suppliers that Fitch tracks, generating an estimated 10% of revenue and 12% of operating margin from Russia last year.