S&P Global downgrades Stellantis due to weak margin prospects

Published 06/03/2025, 14:18
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Investing.com -- S&P Global, a leading global ratings agency, announced on Thursday that it has lowered the rating of Stellantis (NYSE:STLA) STLAM.MI from "BBB+" to "BBB". The downgrade is attributed to the automaker’s weak margin prospects.

The agency stated that the price reductions Stellantis initiated in North America and Europe at the end of last year, combined with affordability issues from customers, are likely to restrict the company’s volume growth and margin expansion in these regions.

In its report, S&P Global also noted that it does not anticipate Stellantis will absorb tariff costs. Instead, it expects the company to mitigate the impact by adjusting its pricing and potentially relocating some of its assembly operations to the U.S.

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