YES! You will receive a penalty! Everybody's talking about real life. In the game you will be docked negative renown for sinking a neutral no matter what the circumstances. This includes GWX.
The only way to guarantee a positive result is to edit the Basic.cfg:
[RENOWN]
RenownReachGridObjCompleted=0
RenownPatrolGridObjCompleted=0
CompletedPatrol=0
NEUTRAL=-1
ALLIED=1
AXIS=-10
WrongShipSunk=-5000
FirstRankRenown=100
SecondRankRenown=350
EndCampaign=-5000
Change NEUTRAL =-1
To NEUTRAL=1
My personal preference is to have NEUTRAL=0, because I don't like having it too easy to get easy credit.
I also changed AXIS=-10 to AXIS=-1, because while sinking friendly ships did invite a court-martial, no kaleun was ever found guilty in those trials.
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—Rocky Russo
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