Shares in Peugeot fell around 7.7 percent following a debt rating cut by Moody’s late on Thursday. The move saw the French car manufacturer’s rating drop to “junk” status, which may hinder a proposed deal with General Motors.
According to Moody’s, a GM alliance would possibly weigh on earnings in the short term without yielding the expected savings in the long term.
The company said that it had been anticipating the downgrade and had prepared for it with additional cost cutting measures.
