S&P Global has lowered Stellantis’ credit rating to “BBB” from “BBB+”, citing concerns over the automaker’s profit margins, the ratings agency said on Thursday.
S&P attributed the downgrade to price reductions implemented in North America and Europe late last year, as well as affordability challenges faced by consumers, which could limit the company’s volume growth and margin expansion.
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The downgrade follows Stellantis’ cautious outlook for 2025, after its latest earnings report showed a decline in U.S. sales, leading to the departure of CEO Carlos Tavares.
Meanwhile, the automaker welcomed U.S. President Donald Trump’s decision on Wednesday to delay the enforcement of a 25% tariff on Canadian and Mexican imports by one month. Stellantis pledged to support Trump’s “America First” policy by increasing vehicle production in the U.S.
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S&P noted that it does not expect Stellantis to absorb the tariff costs but rather pass them on through pricing adjustments and potential shifts in assembly to the United States.