TEXT-S&P summary:Compagnie Generale des Etablissements Michelin S.C.A.


(The following statement was released by the rating agency)

Apr 27 -


Summary analysis -- Compagnie Generale des Etablissements Michelin 27-Apr-2012



CREDIT RATING: BBB+/Stable/A-2 Country: France

Primary SIC: Tires and inner


Mult. CUSIP6: 204395


Credit Rating History:

Local currency Foreign currency

23-Mar-2012 BBB+/A-2 BBB+/A-2

04-Oct-2010 BBB/A-2 BBB/A-2

31-Oct-2008 BBB/A-3 BBB/A-3

03-Aug-2007 BBB/A-2 BBB/A-2



The ratings on French tire manufacturer Compagnie Generale des Etablissements Michelin S.C.A. (Michelin) and related companies (together, the group) reflect Standard & Poor's Ratings Services' view of Michelin's "satisfactory" business risk profile and "intermediate" financial risk profile. Our view is supported by the group's leadership in the global tire industry, premium pricing, and limited sensitivity to fluctuations in vehicle production volumes. The ratings are also supported by a solid capital structure and management's commitment to a conservative financial policy following the EUR1.2 billion capital increase in October 2010. The ratings are constrained by the capital-intensive nature and the cyclicality of the tire industry, and by exposure to volatile raw material costs, all of which have introduced some volatility into Michelin's past operating results and cash generation.



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