Published by Global Banking & Finance Review®
Posted on October 13, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleMoody's has revised Stellantis' credit ratings outlook to negative, citing financial risks and market challenges, while maintaining its Baa2 rating.
By Matt Tracy
(Reuters) -Credit rating agency Moody's Ratings changed European automaker Stellantis' 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 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 ratings, citing among other things the automaker's weakening but still-strong liquidity profile and its resilient global scale.
Stellantis 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)
A credit rating is an assessment of the creditworthiness of a borrower, typically expressed as a letter grade. It indicates the likelihood that the borrower will default on their debt obligations.
Financial risks refer to the possibility of losing money on an investment or business venture. These risks can arise from various factors, including market fluctuations, credit issues, and operational challenges.
Liquidity is the ability of an asset to be quickly converted into cash without significantly affecting its value. High liquidity means assets can be sold quickly, while low liquidity indicates the opposite.
Profitability is a measure of a company's ability to generate income relative to its revenue, expenses, and equity. It indicates how effectively a company can turn sales into profit.
Market conditions refer to the various factors that influence the performance of a financial market, including economic indicators, supply and demand, and investor sentiment.
Explore more articles in the Finance category
