DBRS boosts Stellantis

DBRS said it upgraded Stellantis NV’s issuer rating and senior unsecured debt rating to BBB (high) from BBB and Stellantis Finance US Inc.’s senior unsecured debt rating to BBB (high) from BBB. The agency also changed the trend to stable from positive.

“The rating upgrades reflect Stellantis’ continued solid financial performance that has caused its financial risk assessment (FRA) to strengthen to levels that readily exceed the former ratings. DBRS Morningstar notes further that the company’s business risk assessment (BRA) remains sound as a major automotive original equipment manufacturer (ranking fourth in global sales volumes, per 2021 data) with a strong brand portfolio and quite reasonable geographic diversification, notwithstanding ongoing challenges in the Chinese market,” the agency said in a statement.

DBRS also said it sees the company’s operating performance probably softening and that consumer demand “may weaken considerably over the near term due to inflationary pressure, rising interest rates and geopolitical uncertainty; this could significantly abate the considerable pent-up vehicle demand that has accumulated over much of the past two years.”

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