Renault risks 'junk' credit rating, S&P warns

French automaker Renault could see its main long-term credit rating cut to below investment grade by Standard and Poor's, the agency said Wednesday, just days after Moody's lowered its own rating to "junk" status.

The moves come as Renault is struggling to re-find its footing in the wake of Carlos Ghosn's departure as chief executive last year, following his shock arrest in Tokyo in November 2018.

Both agencies cited the sharp deterioration in the amount of cash Renault can generate to support operations - its so-called free cash flow generation - at a time when sales are declining in its core European market.