Some analysts say the spin-off Fiat would have been beneficial for the company and its shareholders, while Standard & Poor's would have weakened from a financial point of view. For this reason, the U.S. company has reduced its rating from BB + to BB Lingotto, with a negative outlook, which is nothing but a lower forecast.
Reason? The fear of the repercussions of the business plan of the auto industry considered to be too optimistic because "based on the generation of large economies of scale and expanding in markets with high growth rate." According to the American agency, the risk is high because it involves a very substantial investment which could lead to an increase in financial debt.
Falls into this game can also scaled to Chrysler, which in recent weeks has increased from 20 to 25% and could reach the absolute majority of 51% already by 2011. At year end, in addition, 5.6 billion of debt will expire at the Lingotto. Yet with the new year, Fiat had been successful on the stock market, which later proved to be ephemeral because in February the shares have slowly lost until you lose the value of 8, 29% for the automotive industry and Fiat 2.82% for the Industrial, which is why the assessment continues to BB +. 
Reason? The fear of the repercussions of the business plan of the auto industry considered to be too optimistic because "based on the generation of large economies of scale and expanding in markets with high growth rate." According to the American agency, the risk is high because it involves a very substantial investment which could lead to an increase in financial debt.
Falls into this game can also scaled to Chrysler, which in recent weeks has increased from 20 to 25% and could reach the absolute majority of 51% already by 2011. At year end, in addition, 5.6 billion of debt will expire at the Lingotto. Yet with the new year, Fiat had been successful on the stock market, which later proved to be ephemeral because in February the shares have slowly lost until you lose the value of 8, 29% for the automotive industry and Fiat 2.82% for the Industrial, which is why the assessment continues to BB +.
- S&P To Withdraw All US Rating On May 24, Convert Everything To "Unsolicited" (24/02/2011)
- S&P converts US ratings to "unsolicited" (24/02/2011)
- IC Potash Corp. Information To Be Available Through Standard & Poor's Corporation Records Listing Program (29/12/2010)
- S&P raises credit rating of DirecTV (25/02/2011)
- TEXT-S&P on corporate credit ratings (24/02/2011)
No comments:
Post a Comment