S&P Global Ratings on Dec. 28 upgraded PSA Banque France SA's long-term issuer credit rating and its senior unsecured rating to BBB+ from BBB, following the Dec. 17 ratings action on French carmaker Peugeot SA.
The outlook on the long-term issuer credit rating is stable. The lender's short-term issuer credit rating was affirmed at A-2.
PSA Banque France is a 50/50 joint venture between Peugeot unit Banque PSA Finance SA and Banco Santander SA unit Santander Consumer Finance SA.
The upgrades reflect the agency's view of Peugeot's improved creditworthiness, as well as its view that the downside risks stemming from the carmaker's automotive activities on PSA Banque France's business profile have reduced.
The stable outlook, meanwhile, reflects S&P's expectation that PSA Banque France will continue to develop smoothly over the next two years, helped by its strong commercial performance in France along with its ongoing efforts to diversify funding sources and curb credit risks from dealers and retail clients.
The original S&P Global Ratings document referred to in this news brief can be found here.