FCA: Moody's raises its debt ratings

(CercleFinance.com) - Moody's Investors Service upgraded FCA's senior unsecured debt ratings on Monday, ahead of the carmaker's merger with France's PSA to create Stellantis.


Moody's said it has assigned a "Baa3" issuer rating to Fiat Chrysler Automobiles and upgraded the senior unsecured ratings to "Baa3" from "Ba2." The rating agency has also upgraded FCA's short-term ratings. It has changed its outlook to "stable" from "developing".

In a statement, the company said that the moves reflect the expected closing of the merger between FCA and PSA to create Stellantis, a "larger and more diversified entity with significant synergy potential", zccording to analyst Matthias Heck.

"In our scenario of gradually recovering global light vehicle sales, Stellantis should be able to swiftly improve margins and de-lever to levels, required for the Baa3, while maintaining strong liquidity and being able to spend sizeable investments into carbon transition and autonomous driving technologies,", Heck said.

Moody's has affirmed all its ratings on PSA and its subsidiaries, although has improved the outlook on the ratings to "stable" from "negative."

Copyright (c) 2021 CercleFinance.com. All rights reserved.