Renault’s shares rose in Paris even as Moody’s cut its rating on the car maker’s debt to junk status, citing weaker profitability as the company restructures and grapples with falling demand.

Renault set a gloomy tone for the European car industry by slashing its outlook for revenue and profit, saying weakening economies are weighing on car sales and tougher rules on emissions have increased costs.

Renault shares posted the biggest decline in a year after first-half profit fell short of estimates and the car maker said price pressures are rising in some markets.