Moody's Downgrades Stellantis Rating Amid Profitability Concerns

Moody's announced on Tuesday that it has downgraded Stellantis' credit rating to Baa3. The agency indicated that the outlook for the Italian-French-American automotive group, which includes brands such as Jeep, Peugeot, Fiat, Lancia, Maserati, Alfa Romeo, and Chrysler, remains stable despite the downgrade. The decision stemmed from the release of the company's preliminary results for 2025, which revealed a significant downward adjustment in profitability and cash flows compared to previous expectations. In a related development, Stellantis disclosed on Friday that it would take a 22 billion euro writedown on its balance sheet. This adjustment came as the company recognized it had overestimated the pace of the transition towards electric vehicles. As a result of these financial setbacks, Stellantis announced that it would not be issuing dividends this year, reflecting the impact of the writedown on its financial stability. The automotive giant's move is indicative of broader challenges faced by the industry as it navigates the shift towards electric mobility. Related Sources: • Source 1 • Source 2