Moody's downgrades Fiat's credit rating
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The Canadian Press
Published Wednesday, September 21, 2011 11:34AM EDT
MILAN, Italy - The ratings agency Moody's has downgraded the credit rating Fiat SpA citing financial risks tied to the integration with Chrysler Group LLC.
Moody's on Wednesday downgraded the Italian automaker to Ba2 from Ba1.
The ratings agency said it expects integration of the two automakers will mean they will have "to support each other in the event of financial difficulty.''
Fiat took an initial 20 per cent stake in Chrysler in exchange for engine technology and management prowess. It currently holds a 53.5 per cent share.
Moody's said it made the downgrade even though Fiat does not guarantee Chrysler's debt, and that the two companies' finances remain separate.