“We consider that the combined group will benefit from increased scale, improved business and geographic diversity, and a strong capital structure,” S&P said, estimating a net cash position of more than 10 billion euros ($12.2 billion) at closing and solid free cash flow generation prospects.
The agency had placed FCA’s rating on CreditWatch with positive implications in November 2019.
The outlook on the rating is stable, S&P said adding this reflected on one side expectations of improving profitability and cash flow generation in 2021-2022, while also taking into account the prospect of “an extraordinarily challenging but well-managed 2020” and execution risks over the merger.
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