Moody’s changes Fiat Chrysler to positive

Moody's Investors Service said it changed the outlook on Fiat Chrysler Automobiles NV's (FCA) B1 corporate family rating to positive from stable.

Concurrently, the agency affirmed the corporate family rating, B1-PD probability of default rating, the B2 long-term senior unsecured rating assigned to the debt issued by FCA and its rated subsidiaries, Fiat Chrysler Finance Europe SA, Fiat Chrysler Finance North America Inc., as well as the provisional B2/provisional NP rating assigned to FCA, Fiat Chrysler Finance Europe SA, Fiat Chrysler Finance North America Inc. and provisional B2 rating assigned to Fiat Chrysler Finance Canada Ltd.

In addition, Moody's affirmed the Ba1 rating assigned to FCA US LLC's first-lien secured term loans and secured revolving credit facility and the B1 rating assigned to its second-lien secured notes due 2021.

"The change in outlook to positive reflects the continuation of the positive earnings trends reported by FCA in two of its core regions, NAFTA and EMEA, supported by favorable growth in demand for passenger cars and the success of some of its key brands, especially Jeep," Yasmina Serghini, Moody's senior credit officer and lead analyst for FCA, said in a news release.

"We also expect that FCA will further simplify its debt structure and will reduce its indebtedness in the course of 2016, which will drive an improvement in its financial profile."

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