Fitch Ratings Has Positive Outlook On U.S. Auto Manufacturers

Fitch Ratings announced Monday that it “expects the credit profiles of U.S. auto manufacturers and suppliers to strengthen in 2015 despite slower growth in auto sales, as discussed in its outlook report published today. Fitch's ratings outlook is positive while the overall sector outlook is stable.”

Fitch forecasted “U.S. light vehicle sales of 16.8 million units in 2015, up 3 percent from its forecast 16.3 million in 2014 but below prerecession peak levels.”

Globally, the ratings firm expected “auto demand to increase modestly in 2015.” Fitch believed “that manufacturers will need to adjust from a growth-oriented environment in the U.S. to a more steady-state situation. This will test the pricing and production discipline that the industry generally demonstrated in the post-recession period.”

Fitch commented that General Motors Company GM “is a candidate for an upgrade to investment grade status in 2015, despite ongoing legal issues around the company's recalls in 2014.”  The company is currently rated BB+ with a Positive Outlook.

Ford Motor Company F was also mentioned as an upgrade candidate along with several U.S. auto suppliers. Ford is currently rated BBB- with a  Positive Outlook.

General Motors Company closed at $32.68 Monday, down 2.82 percent.

Ford Motor Company closed at $15.43 Monday, down 1.72 percent.