Standard & Poor's has decided to confirm the BB- long-term rating for Fiat Chrysler Automobiles (FCA) with a stable outlook. At the same time, the agency assigned a B- rating to the $2,5 billion convertible bond that the group intends to place on the market.
According to the agency, the bond as well as the sale of ordinary shares “support FCA's risk profile and therefore mitigate the risks of a downgrade. These risks would otherwise have increased given the negative operating cash flow, caused by the significant capital expenditures related to the 2018 business plan, in a weak operating environment in some markets such as Latin America".
