Moody’s Cuts Fiat’s Credit Rating

Moody's Investors Service has lowered its credit rating for Fiat SpA to B1, four notches below investment grade, because of concern about the company disappointing results for 2013.

The rating service also points to "significant challenges" to Fiat's ability to meet its performance forecast for the current year. The firm says it is especially concerned that the carmaker won't be able to offset slumping sales in Latin America, where profits plunged 80% in the fourth quarter last year.

Moody's also attributes its downgrade to multiple problems facing Fiat in Europe that include weak sales, price pressure, overcapacity and a lack of high-volume new models.

The service says it will continue to provide separate ratings for Fiat and Chrysler, even though Fiat completed its purchase of the American company in January.

The other two rating services, Fitch and Standard & Poor's, have left their Fiat ratings unchanged for now.