LONDON, Feb. 24 (Reuters) - Standard & Poor's lowered its rating on Fiat (FIA.MI: Quote ) long-term BB + from BB, and confirmed that the short-to B.
The outlook is negative. The rating was on CreditWatch with negative implications by April 23.
S & P has assigned a BB + rating Fiat Industrial (Fi.Ma: Quote ).
The rating reflects a financial risk profile and S & P defines as "significant." The agency instead of talking business profile "satisfactory".
The rating agency said that Iveco and CNH (CNH.N: Quote ) are well positioned in key markets and this reduces the impact strong competition in the sector.
FIAT FOR MORE BUSINESS RISKS
"The downgrade reflects our view that credit quality is weaker than the Fiat group's previous structure, due to increased risks of business after the spin-off of other assets," says the ' Standard & Poor's analyst Barbara Castellano.
The negative outlook highlights the risk of a new downgrade over the next 12-18 months.
S & P identifies a number of weaknesses.
The possibility of an increase in debt over 2 billion in 2011, we have already included in our forecasts, the rating agency said in a statement.
The risk that some elements of the business plan do not materialize - for example, union negotiations, the revival of minor brands, sales in new markets - while pushing the debt investments. The risk
Fiat decides to accelerate the acquisition of Chrysler, which was originally scheduled for the period 2013-1016. At this stage we do not have evidence of what the company might decide, apart from the expressions of interest made by the CEO, always says S & P.
The lack of improvement in the liquidity profile of the company in the coming months.
The outlook is negative. The rating was on CreditWatch with negative implications by April 23.
S & P has assigned a BB + rating Fiat Industrial (Fi.Ma: Quote ).
The rating reflects a financial risk profile and S & P defines as "significant." The agency instead of talking business profile "satisfactory".
The rating agency said that Iveco and CNH (CNH.N: Quote ) are well positioned in key markets and this reduces the impact strong competition in the sector.
FIAT FOR MORE BUSINESS RISKS
"The downgrade reflects our view that credit quality is weaker than the Fiat group's previous structure, due to increased risks of business after the spin-off of other assets," says the ' Standard & Poor's analyst Barbara Castellano.
The negative outlook highlights the risk of a new downgrade over the next 12-18 months.
S & P identifies a number of weaknesses.
The possibility of an increase in debt over 2 billion in 2011, we have already included in our forecasts, the rating agency said in a statement.
The risk that some elements of the business plan do not materialize - for example, union negotiations, the revival of minor brands, sales in new markets - while pushing the debt investments. The risk
Fiat decides to accelerate the acquisition of Chrysler, which was originally scheduled for the period 2013-1016. At this stage we do not have evidence of what the company might decide, apart from the expressions of interest made by the CEO, always says S & P.
The lack of improvement in the liquidity profile of the company in the coming months.
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