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FCA Moves Closer to Investment Grade Rating
Moody’s Investors Service has joined S&P Global Ratings in elevating its credit rating for Fiat Chrysler Automobiles NV to one notch below investment grade.
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Moody’s Investors Service has joined S&P Global Ratings in elevating its credit rating for Fiat Chrysler Automobiles NV to one notch below investment grade.
Fitch Ratings raised FCA to investment grade last November. Moody’s say its own rating increase is based in large part upon the company’s shrinking debt and growing profitability in North America. Moody’s say it also is confident FCA can sustain its gains in spite of a difficult business environment.
Moody’s also notes that FCA faces less exposure than many other carmakers to U.S. tariffs on goods from China or Europe, because the company has a small market share in China and imports few vehicles from Europe.
Achieving an investment grade credit rating, which indicates a company’s ability to meet its financial obligation, from all three rating services would lower borrowing costs for FCA and bolster its appeal to investors.
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