Renault Returns to Investment Grade as Moody's Upgrades Rating to Baa3

Moody's Ratings has upgraded Renault S.A. to Baa3 from Ba1, a move that restores the French carmaker's investment-grade credit rating. The agency assigned a stable outlook, citing the company's sustained improvement in credit quality, supported by a fortified balance sheet and prudent financial policies.

Strengthened Balance Sheet Drives Upgrade

The upgrade reflects Renault's successful efforts to deleverage and generate cash. Moody's noted that the company maintained an adjusted net cash position of approximately €5.6 billion as of June 2026. This was achieved through strong operational performance and disciplined financial management.

Key financial achievements highlighted by the rating agency include:

• Generation of approximately €7.5 billion in Moody's-adjusted free cash flow between 2021 and 2025.
• A reduction in gross debt by around €7 billion during the same period.
• A strong liquidity position as of June 2026, consisting of €14.6 billion in cash and equivalents and €3.3 billion in undrawn credit lines.

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Financial Outlook and Strategic Context

Moody's expects Renault to maintain credit metrics consistent with its new Baa3 rating, even amid a challenging automotive market. The agency anticipates the company will continue to generate positive free cash flow while balancing dividend payments and investment needs.

The rating also considers Renault's relatively low capital intensity compared to its global peers, with research and development at 3.9% and capital expenditure at 3.1% of automotive revenue in the 12 months through June 2026. Furthermore, Moody's noted that the French state's 15% stake in the automaker provides a degree of stability, viewing the company's strategic importance to France as a factor that mitigates downside risk.