Renault's outlook cut to 'negative' by rating agency Standard & Poor's

FILE PHOTO - The logo of French car manufacturer Renault is seen at a dealership of the company in Illkirch-Graffenstaden near Strasbourg, France, January 10, 2019. REUTERS/Vincent Kessler

PARIS (Reuters) - Credit rating agency Standard & Poor’s cut its outlook on carmaker Renault to “negative” from “stable”, citing broader challenges within the automotive sector that could hit its profits.

“The negative outlook reflects the risk that Renault will be unable to return its EBITDA margin to 2017 levels (9%-10%) over the next two years given the numerous headwinds in the global automotive industry and company-specific problems that could reduce its operating profit generation for a sustained period,” S&P Global Ratings wrote in a note.

Reporting by Sudip Kar-Gupta; Editing by Leigh Thomas