Ratings agency Moody’s has communicated today that it has
raised its rating on Fiat’s long-term debt from "Ba1" to
"Baa3". The short-term rating was also raised from "Not
Prime" to "Prime-3". The outlook meanwhile is stable.
Moody's Investors Service become the third of the three
major credit ratings agencies to upgrade Fiat Group debt
outlook and bring the automaker back to investment grade
status, following similar upgrades from Fitch Racings early
last summer and Standard & Poor's at the beginning of
the month. Moody's had reduced Fiat stock to junk status
five-and-a-half years ago when the Italian firm gone into
financial crisis.
"Moody’s decision to reinstate Fiat’s 'investment grade'
rating is a cause of great satisfaction for us," said Fiat
Group CEO Sergio Marchionne after the announcement by
Moody's today. "With today’s upgrade, all three leading
rating agencies have now expressed positive view of our
Company’s creditworthiness."
"I
believe this shows recognition of the effort made by the
Group’s management to reach all targets set and return Fiat
to a solid footing upon which it can build its future. The
announcement provides us further incentive to continue along
our path of dependable performance with commitment and
significant rigor to achieve the ambitious objectives we
have set for the next few years."
