Loading...
See More

S&P threatens to downgrade Fiat

Feb 06 2012 12:01 AFP

Related Articles

Fiat, Sollers scrap JV

Fiat, Chrysler not merging yet

Fiat revamps in bid to create giant

Fiat gears up for global megagroup

Fiat to buy Chrysler stake for $1.3bn

Renault, Peugeot Citroen pay back loans

 

Milan - Standard & Poor's ratings agency threatened to downgrade Italian auto giant Fiat on Monday due to sagging sales in Europe and Brazil, as well as the company's over-reliance on US partner Chrysler.

Fiat stock fell sharply after the announcement, with shares plunging 3.26% to €4.51 in morning trading, while the benchmark FTSE Mib index on the Milan stock exchange was down just 0.94%.

Fiat auto is an important component of overall Italian industry.

"We see weakening demand in Europe's over-supplies mass vehicle market, particularly Italy's as likely to pressure Italy-based Fiat's profits and cash flow," the ratings agency said in a statement.

"Concurrently, Brazil, Fiat's strongest market, is the site of increasing competition that has eroded the company's leading market share," it said.

"Standard & Poor's believes this environment will cause Fiat's European operating performance to deteriorate in 2012," it added.

S&P said it was placing Fiat's BB long-term corporate credit rating and BB issuer ratings on the company's senior unsecured notes "on credit watch with negative implications."

standard and poors  |  fiat
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

Device lets disabled people talk through their nose

A device that converts nose breaths into speech will open new doors for people with Parkinson’s or motor neuron disease.

 
 

For chic geeks...

It’s THIS easy for someone to steal your ATM pin!
This is why you should install iOS 8
17 photo illusions that look so real
Check out the speed of this robo-cheetah!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...