Moody's Investors Service Inc. said Wednesday it assigned a Baa2 rating to the 50 billion yen in "Samurai" bonds of Renault S.A., the biggest shareholder in Nissan Motor Co., citing expectations Renault will benefit from its new models and its deepening ties with Nissan.
The rating outlook is positive, the major U.S. credit-rating agency said. Samurai bonds are a yen-denominated instrument issued in Japan by foreign borrowers.
The positive views were backed by Moody's expectations that the French automaker "will maintain a competitive position in Western Europe, Turkey, and the Mercosur countries" and that its operating environment will receive fresh fuel from its newly released vehicles -- the Clio and Laguna 2. The Mercosur countries are Argentina, Brazil, Uruguay, Paraguay, Chile and Bolivia.
Renault "should also benefit from the rapidly expanding relationship with Nissan," in which Renault has a 36.8 percent equity stake, Moody's said.
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