Fiat group CEO Sergio Marchionne voiced indignation on Monday after Moody's confirmed its Ba1 rating on the car maker's debt
''It is obscene to attribute a junk bond rating to a company that has no debt. It's like offering glasses to someone who can already see,'' Marchionne said.
The Fiat boss said many analysts working for credit rating agencies like Moody's were inexperienced and would do well to ''spend a day or two in a factory''.
Last week the Fiat group announced a net profit of 2.054 billion euros for 2007, more than double its profit in the previous year.
The group also levelled its industrial debt thanks to a strong cash flow which also allowed it to buy back its own shares for a value of 400 million euros.
Contacted by ANSA in Milan, Moody's said it had no comment to make on Marchionne's statement, which came as he signed a preliminary agreement for the expansion of Fiat's Ferrone plant in Piedmont.
When Moody's confirmed its Ba1 rating on January 24, agency analyst Falk Frey said 2008 might be more challenging for Fiat, as a weakness in the overall economy and the strengthening competitive landscape could slow down the strong growth observed in the last few years.
Fiat's accounts for 2007 appeared to confirm the group's remarkable turn-around since its deepest ever crisis five years ago.
The group's trading profit in 2007 hit an all-time high of 3.233 billion euros, while turnover jumped 12.9% to 58.5 billion euros.
Based on last year's results, Fiat has confirmed its targets for 2008, which include a turnover of over 60 billion euros and a further buy-back of shares, despite an expected downturn for the world economy.
