January 8, 2014 / 8:13 AM / 4 years ago

Fiat down 1 pct after Moody's mulls rating downgrade

MILAN, Jan 8 (Reuters) - Shares in Fiat opened more than 1 percent lower on Wednesday after Moody’s had placed its Ba3 rating of the carmaker under review for a possible downgrade following the company’s deal to take full control of Chrysler Group LLC.

The ratings agency said late on Tuesday that Fiat’s $4.35 billion deal to buy out the stake in Chrysler it did not already own would “materially weaken Fiat’s liquidity position at a time when the company is still free cash flow negative.”

At 0807 GMT, Fiat’s shares were down 1.12 percent at 6.61 euros, compared with a 0.14 rise in Milan’s FTSE MIB blue chip index.

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