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Summary Peugeot shares were down 2.50 percent at 6.08 euros at the close of trade in Paris on Wednesday.
Moodys agency on Thursday downgraded the credit rating of struggling French carmaker PSA Peugeot Citroen, warning also that it was placing the company on review for a possible further downgrade.The agency in a statement said it had downgraded Peugeots rating, and that of its subsidiary GIE PSA Tresorerie (GIE), from Ba1 to Ba2 and left it on review for further downgrade.The news came the day after Frances biggest carmaker announced that it had suffered a first half net loss of 819 million euros ($989 million), more than reversing a year-earlier net profit of 806 million euros.The company, which has announced 8,000 job cuts in France, said it will implement a 1.5-billion-euro cost reduction plan through to 2015.Moodys said that its decision to downgrade the rating of the second-largest automaker in Europe reflects the material deterioration in the already weak capacity utilisation of the companys European plants.The downgrade and continuing review also take into account the fact that PSA is unlikely to return to break-even operating cash flow before late 2014, said Moodys Senior Vice President Falk Frey.Moodys move follows similar downgrades Wednesday by fellow ratings agencies Fitch and Standard and Poors which also lowered Peugeots ratings by one notch.
