PSA_GROUP_REGISTRATION_DOCUMENT_2017
GROUPE PSA Risk Factors
CLIMATE CHANGE RISKS 1.5.1.13. Risk factors
continuous awareness training of employees on the dangers and best practices in controlling information by the continuous deployment of an Information Control Management System (Système de management de la maîtrise de l’information – SMMI); intensifying research on security vulnerabilities in computer applications and implementing corrective actions; deployment of Disaster Recovery Plans that guarantee that the Group would be able to continue its essential operations if a malfunction or major incident occurred at one of its IT centres; compliance with regulatory and legal developments, specifically related to personal data; introduction of safety measures for people and property in the embedded systems of networked vehicles similar to those already used in stand-alone systems; implementation of the security operation center (SOC): a control tower improving our vision and detection of anomalies and attacks, and considerably leveraging our ability to take action.
Groupe PSA’s industrial sites may, depending on the geographical areas in which they are situated, be subject to natural phenomena such as earthquakes or climatic phenomena such as hurricanes, cyclones and floods. Climatic events such as global warming need to be factored into the choice of new industrial sites of Groupe PSA, with means of protection provided for certain existing sites located in areas at risk. Risk management and control processes Beyond regulatory requirements, Groupe PSA is committed to active management of risks entailed in natural disasters and climate change, as exemplified by the institution of risk prevention and control actions for its plant, and the factoring-in of climate-change issues at its new industrial sites.
Financial market risks 1.5.2.
Groupe PSA is exposed to liquidity risk, as well as interest rate risks, counterparty risks, exchange rate risk and other market risks related in particular to fluctuations in commodity prices. Note 12.7 to the 2017 consolidated financial statements provides information on risk management, which is primarily carried out by the Finance Department, as well as identified risks and the Group policies designed to manage them.
EXPOSURE TO CHANGES
COUNTERPARTY AND CREDIT RISKS
1.5.2.1. IN EXCHANGE RATES
1.5.2.3.
Please refer to Note 12.7.A (3) to the 2017 consolidated financial statements, Section 5.6 below.
Please refer to Note 8.3 and Note 12.7.A (4) to the 2017 consolidated financial statements, Section 5.6 below.
LIQUIDITY RISK 1.5.2.4.
EXPOSURE TO CHANGES
1.5.2.2. IN INTEREST RATES
Please refer to Note 8.3 and Note 12.7.A (1) to the 2017 consolidated financial statements, Section 5.6 below.
Please refer to Note 12.7.A (2) to the 2017 consolidated financial statements, Section 5.6 below.
CREDIT RATING
1.5.2.5.
At 28/3/2018
Rating
Revision date
Previous rating
Peugeot S.A. Moody’s
Ba1/Stable/NP BB+/Positive
26/07/2017 23/03/2018
Ba2/Stable/NP
Fitch
BB+/Stable
Banque PSA Finance Moody’s (1)
A3/Stable/P-2
08/03/2017 Baa2/stable/P-2
Rating not requested since 11 February 2016. (1)
Peugeot S.A.’s credit rating is based on criteria that assess the Group’s competitiveness, geographic diversification, profitability and liquidity, and involve financial ratios, particularly the net debt-to-equity and operating cash flow-to-net debt ratios. In 2017, the ratings of Peugeot S.A. and Banque PSA Finance improved following the disclosure of 2016 earnings in February 2017. Moody’s Investors Service upgraded Banque PSA Finance’s rating to A3/stable on 8 March 2017.
Moody’s Investors Service also upgraded Peugeot S.A.’s rating to Ba1/stable on 26 July 2017. Fitch upgraded Peugeot S.A.'s rating to BB+/Positive on 23 March 2018 following the disclosure of 2017 earnings. Any revision of these ratings may affect the companies’ ability to obtain financing in the short, medium and long term.
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GROUPE PSA - 2017 REGISTRATION DOCUMENT
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