The credit rating agency S&P Global has revised Stellantis‘ credit rating downward, lowering it from “BBB+” to “BBB”. The automotive group, which as we know includes many historic brands such as Fiat, Alfa Romeo, and Peugeot, is facing a very complicated economic context that has led S&P to express concerns about future prospects.
S&P Global revises Stellantis’ credit rating downward
According to the agency, the combination of price reductions and growing consumer uncertainty regarding the economic sustainability of purchasing new vehicles could limit sales growth and slow the expansion of profit margins in key markets. Among the main reasons for the downgrade are the price reduction policies applied by Stellantis in North America and Europe, which began at the end of last year and continued in 2024 in an attempt to stimulate demand and attract more customers.
Stellantis is also facing the additional complication of import tariffs imposed by the United States, a circumstance that has had a significant negative impact on its operations and overall performance. This uncertain economic situation has contributed to a slowdown in its sales, especially at an already delicate time for the group.
S&P‘s decision to lower the company’s credit rating came just a few days after the presentation of forecasts for 2025, during which Stellantis highlighted the main difficulties encountered throughout the year. In particular, the group emphasized disappointing results in the US and European markets, which have severely affected the overall balance sheet and future prospects. The combination of these factors has generated a climate of uncertainty that is reflected in the decisions of rating agencies.
The credit rating represents an assessment of a company’s financial reliability, measuring the risk associated with investing in its debt securities. This assessment is provided by specialized agencies that consider various economic, political, and social factors. Among the main agencies providing these ratings are S&P, Fitch, and Moody’s, which play a crucial role in assessing risk for investors.