Moody's downgrades Fiat's rating on earnings worry

MILAN Tue Feb 11, 2014 2:06pm EST

MILAN Feb 11 (Reuters) - Moody's downgraded Fiat-Chrysler's rating to B1 from Ba3 on Tuesday, citing weak 2013 results and challenges it sees for the Italian carmaker in achieving its guidance this year.

"We have downgraded Fiat's ratings following its weaker-than-expected performance in fiscal year 2013 and our view that the company faces significant challenges in terms of achieving its outlook guidance for the current fiscal year," Falk Frey, Moody's lead analyst for Fiat, said in a statement.

The ratings agency 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.

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