Fitch Ratings Downgrades Chrysler Financial to 'B+'
Fitch Ratings has downgraded Chrysler Financial from 'BB-' to 'B+'. Approximately $6 billion of debt is affected by this action. The rating outlook is negative.
NEW YORK -- Fitch Ratings has downgraded Chrysler Financial from 'BB-' to 'B+'. Approximately $6 billion of debt is affected by this action. The rating outlook is negative.
This action follows Fitch's downgrade of Chrysler LLC on May 7, 2008, to 'B'.
The downgrade of Chrysler mainly reflected the decline in unit volumes and revenues resulting from weak economic conditions, modest share losses and certain strategic initiatives, Fitch reported.
Chrysler Financial's recent operating performance has been within Fitch's expectations since it was spun off from Daimler A.G. in July 2007. Nonetheless, Fitch believes Chrysler Financial's future operating performance will suffer due to aforementioned issues with Chrysler and the weaker environment for consumer credit.
The negative rating outlook reflects the challenging environment for automotive lenders in the U.S. Industry delinquencies and losses have increased as a result of weaker economic conditions and industry dynamics, such as lower used car prices.
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