By Matt Tracy
Oct 13 (Reuters) - Credit rating agency Moody's Ratings
changed European automaker Stellantis' (STLA) ratings
outlook to negative on Monday, though maintained its current
ratings.
In their Monday report, Moody's analysts outlined the financial
risks facing the owner of Chrysler, Fiat, Jeep and other car
brands.
The report highlighted Stellantis's (STLA) weak operating
performance, as well as whether and how much the company could
see its profitability and free cash flow generation recover.
Analysts also pointed to the automaker's declining market share
since the start of 2024, as auto dealers have reduced their
inventories, demand for various brand models has dipped, and the
company has experienced delays in new product launches.
"Additionally, challenging market conditions in Europe and
the impact of U.S. import tariffs have further pressured
profitability and cash flow," the Moody's analysts wrote.
The rating agency stopped short of actually downgrading
Stellantis's (STLA) ratings, citing among other things the automaker's
weakening but still-strong liquidity profile and its resilient
global scale.
Stellantis (STLA) holds an issuer-level Moody's rating of Baa2,
which is on the lower end of the investment-grade ratings
spectrum.
(Reporting by Matt Tracy; Editing by David Gregorio)
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