MILAN — Credit standing company S&P says it has raised Fiat Chrysler Car’s long-term debt score to ‘BBB-‘ following shareholder approval of the merger with rival PSA Group.
“We take into account that the mixed group will profit from elevated scale, improved enterprise and geographic variety, and a powerful capital construction,” S&P mentioned, estimating a internet money place of greater than 10 billion euros ($12.2 billion) at closing and strong free money movement technology prospects.
The company had positioned FCA’s score on CreditWatch with optimistic implications in November 2019.
The outlook on the score is steady, S&P mentioned including this mirrored on one facet expectations of enhancing profitability and money movement technology in 2021-2022, whereas additionally considering the prospect of “a very difficult however well-managed 2020” and execution dangers over the merger.