Stellantis Considers Exiting StarPlus Battery JV; Credit Rating Dropped to BBB-
Stellantis is in talks to exit its StarPlus Energy US battery joint venture with Samsung SDI, considering selling its stake after multibillion-euro EV losses and strategic write-downs. S&P cut its long-term rating to BBB- with a negative outlook and Moody’s lowered to Baa3, placing both one notch above non-investment-grade status.
1. Battery Joint Venture Exit Talks
Stellantis is exploring options to exit its StarPlus Energy joint venture with Samsung SDI in the US. Talks include potential sale of its stake, a process that could incur significant costs and delays given the multibillion-euro investments in EV cell manufacturing capacity.
2. Credit Rating Downgrades to Lowest Investment Grade
S&P Global lowered Stellantis’s long-term issuer rating from BBB to BBB- with a negative outlook, while Moody’s cut its rating from Baa2 to Baa3, both now one notch above non-investment grade. The downgrades reflect weaker profitability and cash flow forecasts for 2025.
3. Strategic EV Losses Prompt Asset Write-downs
The moves follow recent multibillion-euro charges tied to revising the company’s EV strategy and write-downs on battery assets. These losses have weighed on Stellantis’s earnings and cash flow projections, intensifying scrutiny of its EV transition costs.