Moody’s Upgrades Chrysler Credit Rating

Moody's Investors Service has raised its rating of Chrysler Group LLC debt one notch to B1, but still four steps below investment grade.

The agency cites Chrysler's improving profitability, liquidity and U.S. market share. The company posted a $1.7 billion net profit last week. Its domestic sales jumped 16% to 115,200 vehicles in January to capture 11% of the American market.

Chrysler must continue to boost quality and invest in developing new models to upgrade its aging lineup, Moody's notes. It adds that the company needs to expand its overseas sales.

The agency says it could boost Chrysler's rating further if parent Fiat SpA makes progress in reviving its ailing Europe operations.