• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

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

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

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

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...