FCA: S&P puts debt on creditwatch positive
(CercleFinance.com) - S&P Global Ratings has placed the debt of Italo-American carmaker Fiat Chrysler Automobiles on credit watch, with positive implications, citing the group's planned merger with France's Peugeot.
In a report the credit rating agency said that it could raise its "BB+" credit rating on the company by one notch, to "BBB-", in line with the rating it has on PSA.
S&P believes that the combined group could benefit from its increased scale, improved business diversity, and relatively low leverage post-closing.
Still, synergies could take time, entailing significant implementation costs and an execution risk, it warned.
The FCA share is currently up 0.2% in Milan.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
In a report the credit rating agency said that it could raise its "BB+" credit rating on the company by one notch, to "BBB-", in line with the rating it has on PSA.
S&P believes that the combined group could benefit from its increased scale, improved business diversity, and relatively low leverage post-closing.
Still, synergies could take time, entailing significant implementation costs and an execution risk, it warned.
The FCA share is currently up 0.2% in Milan.
Copyright (c) 2019 CercleFinance.com. All rights reserved.