All data is delayed
See More

S&P threatens to downgrade Fiat

Feb 06 2012 12:01

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



Read Fin24’s Comments Policy 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
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills..

Money Clinic

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

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote