The European market sinks the rating of the Lingotto: the agency Standard and Poor's cuts rating on Fiat from BB to BB- keeping a stable outlook. A decision linked primarily to the “weak performance of Fiat in Europe“, they explain from S&P.
According to the agency, Fiat "will continue to suffer from industry overcapacity and underutilization of its facilities in Europe in the coming years“. Maintaining a "stable" outlook is justified by the "adequate liquidity and Chrysler's recovery".
The rating agency forecasts still weak demand from Italian consumers for 2012. There could then be further downward revisions should the automaker's results suffer “a further decline or its operations in Brazil slow down significantly”.
