Moody’s Upgraded Fiat Chrysler’s Ratings

Fiat Chrysler Automobiles (FCAU) has a market cap of $8.5 billion. It fell by 2.5% to close at $6.56 per share on July 19, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.2%, -3.0%, and -53.1%, respectively, on the same day.

FCAU is trading 2.5% above its 20-day moving average, 3.9% below its 50-day moving average, and 31.0% below its 200-day moving average.

The Vanguard FTSE Developed Markets ETF (VEA) invests 0.10% of its holdings in Fiat Chrysler. The ETF tracks a market-cap-weighted index of large- and midcap stocks from developed markets outside the US, dynamically transitioning to include small caps and Canadian stocks. The YTD price movement of VEA was -0.31% on July 19.

The market caps of Fiat Chrysler’s competitors are as follows:

• Toyota Motor Corporation (TM) — $180.0 billion
• General Motors (GM) — $48.1 billion
• Tesla Motors (TSLA) — $33.0 billion

Moody’s Investors Service has upgraded the following FCA’s ratings:

• FCA Bank S.p.A’s long-term deposit ratings from Baa1 to A3
• Its long-term issuer rating and the debt rating of its supported entities from Baa2 to Baa1
• Adjusted Baseline Credit Assessment (BCA) from Ba1 to Baa3

Moody’s gave a stable outlook on all long-term ratings.

Below is a breakdown of Fiat Chrysler’s US sales in June:

• Fiat Chrysler US: 197,000 units, a rise of 6.5% over June 2015
• Jeep: 84,000 units, a rise of 17.0% over June 2015
• Chrysler: 25,000 units, a fall of 19.7% from June 2015
• Dodge: 45,000 units, a rise of 3.1% from June 2015
• Fiat: 2,544 units, a fall of 18.9% from June 2015
• Ram: 41,000 units, a rise of 14.3% from June 2015

Here’s a breakdown of sales in Canada:

• Fiat Chrysler Canada reported net sales of 27,776 units, a rise of 2.1% from June 2015.
• Dodge Grand Caravan reported sales of 6,165 units, a rise of 42.6% from June 2015.
• Jeep Cherokee reported sales of 2,810 units, a rise of 19.0% from June 2015.
• Dodge Challenger reported sales of 374 units, a rise of 14.7% from June 2015.
• The Jeep brand reported sales of 7,693 units, a rise of 11.0% from June 2015.

Here’s a breakdown of sales in Italy:

• FCA Italy reported a rise in sales of 13.6% from June 2015.
• The Fiat brand reported a rise in sales of 13.9% from June 2015.
• Alfa Romeo reported a rise in sales of 34.1% from June 2015.
• Jeep reported a rise in sales of 20.3% from June 2015.

Here’s a breakdown of sales in Europe:

• Fiat Chrysler Europe reported total sales of 98,700 units, a rise of 12.9% from June 2015.
• Sales in France rose by 7.0% from June 2015.
• Sales in Germany rose by 15.3% from June 2015.
• Sales in Spain rose by 27.5% from June 2015.
• Sales in the United Kingdom rose by 7.6% from June 2015.
• Fiat brand reported European sales of 75,600 units, a rise of 13.9% from June 2015.
• Jeep brand reported sales of ~9,900 units, a rise of 16.2% from June 2015.
• Alfa Romeo reported sales of ~6,700 units, a rise of 22.4% from June 2015.

In the next part, we’ll discuss PACCAR.