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Research Update: French Tire Maker Michelin 'BBB' Rating Removed From CreditWatch Negative On Tire Market Improvement; Outlook Negative Jan 10 Product Image

Research Update: French Tire Maker Michelin 'BBB' Rating Removed From CreditWatch Negative On Tire Market Improvement; Outlook Negative Jan 10

  • ID: 1806329
  • January 2010
  • Region: France
  • Standard & Poors

Abstract
We believe that the clear improvement in tire market volumes in the last quarter of 2009 and harsh winter weather in Europe are likely to benefit Michelin's earnings in 2009 and beyond. We are affirming our 'BBB' rating on Michelin and removing it from CreditWatch negative. The negative outlook reflects our view of the tough external environment. In addition, there is a risk that the tire market volumes might not recover enough in 2010 to improve Michelin's profitability such that it achieves cash flow coverage ratios that are commensurate with the rating. On Jan. 19, 2010, Standard & Poor's Ratings Services affirmed its 'BBB' long-term corporate credit rating and 'A-3' short-term rating on French tire manufacturer Compagnie Generale des Etablissements...

Companies mentioned in this report are: Compagnie Generale des Etablissements Michelin S.C.A.,Compagnie Financiere Michelin S.C.A.,Michelin Financiere Luxembourg S.A.,Michelin Luxembourg SCS
Action: Affirmed
Action: Outlook: Negative
Action: Removed From CreditWatch

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Note: Product cover images may vary from those shown

Compagnie Generale des Etablissements Michelin S.C.A.,Compagnie Financiere Michelin S.C.A.,Michelin Financiere Luxembourg S.A.,Michelin Luxembourg SCS

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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