Moody's alters Stellantis view to positive

Moody's Investors Service said it changed the outlook on Stellantis NV to positive from stable and affirmed the Baa3 long-term issuer and senior unsecured instrument ratings.

"The outlook change reflects Stellantis' progress in terms of margins and leverage in the first year following the merger between Fiat Chrysler Automobiles NV (FCA) and Peugeot SA (PSA) in early January 2021," said Matthias Heck, a Moody's vice president, senior credit officer and lead analyst for Stellantis, in a press release.

"A rating upgrade to Baa2 is likely, if the company is able to sustain mid- to-high single-digit operating profit margins and maintains leverage sustainable below 2.5x, notwithstanding the short-term challenges in terms of increasing commodity prices and risks for consumer confidence and affordability," added Heck.

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