Thursday, 22 September 2011

Rating agency downgrades Fiat on Chrysler risk, weak Europe

Seems like a tough time for the Automobile Industry, especially the European automobile makers. At the time when the Automobile sector is multiplying with pace, European automobile companies who have enough potential to showcase their talent.

Fiat Automobiles is already facing tough times in Asian subsidiaries where the company is grappling with the issues of Sales, the company is launching new offers along with management changes but seems like the problems are not over for the European subsidiary.

Reknowned Rating agency Moody’s downgraded the Europe based automobile maker. Moody’s has put the company on watch since Friday and yesterday downgraded the rating to ba2 from earlier ba1. Moody's has a B2 rating on Chrysler, which Fiat has run since a 2009 bailout deal with the U.S. government, controlling the company with a 53.5 percent stake.

Moody’s has changes the rating to reflect its closer ties with US base automaker Chrysler and the increased risk of a loss of market share in Europe and greater competition in Brazil.


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