MILAN (Reuters) - Shares in Fiat FIA.MI were slightly lower on Wednesday after Moody’s cut the Italian carmaker’s rating, citing weaker-than-expected 2013 results and challenges to its outlook for this year given eroding profitability in Latin America.
Moody’s cut Fiat’s rating to ‘B1’ from ‘Ba3’ late on Tuesday. A ‘B1’ rating is four notches below investment grade, making it more expensive for Fiat to raise much-needed financing to turn around its loss-making European operations.
Traders said a ratings move was widely expected after Moody’s had placed Fiat’s rating under review for a possible downgrade in early January, just days after the company struck a $4.35 billion deal to take full control of its U.S. unit Chrysler.
At 0806 GMT, the stock was down 0.28 percent at 7.22 euros euros, compared with a broadly flat Milan blue-chip index
Reporting by Agnieszka Flak; editing by Francesca Landini