Michelin: Standard & Poor’s upgrades Michelin’s Long-Term rating by one notch to 'A', with a Stable outlook

Core Viewpoint - Standard & Poor's has upgraded Michelin's Long-Term Issuer Default Rating from 'A-' to 'A' with a Stable outlook, reflecting confidence in the company's financial stability and performance [1][3]. Group 1: Rating Upgrade - The upgrade by Standard & Poor's is part of a trend, following similar upgrades by Fitch and Moody's, indicating a positive shift in Michelin's creditworthiness [3]. - The agency anticipates that Michelin will maintain a very strong balance sheet in 2025 and 2026, supported by strong profitability and solid free operating cash flow [2]. Group 2: Financial Resilience - Michelin's credit metrics are expected to remain resilient even in scenarios of prolonged tariff implementation, due to its high degree of local production in the U.S. and its ability to pass through higher costs [2].