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Italian Carmaker Fiat SpA On CreditWatch Negative On Difficult European And Brazilian Markets And Reliance On Chrysler Feb 12
Standard & Poors, Feb 2012
Abstract
We see weakening demand in Europe's oversupplied mass vehicle market, particularly Italy's, as likely to pressure Italy-based Fiat SpA's profits and cash flow. We have observed increasing industrial and strategic integration of Fiat with Chrysler, as well as Chrysler creditor agreements that limit Fiat's access to cash and a cross-default clause that comes into effect in one Fiat indenture based on Chrysler being consolidated. We are placing our 'BB' long-term and issue ratings on Fiat and its senior unsecured debt on CreditWatch with negative implications. We will resolve the CreditWatch after we have assessed the risks and mitigating factors following the publication of the first audited financial statements consolidating Chrysler and receipt of updated information on operations and strategies. FRANKFURT...
Companies mentioned in this report are: Fiat SpA,Fiat Finance and Trade LTD. societe anonyme,Fiat Finance North America Inc.
Action: On CreditWatch:Negative
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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