DBRS confirms Fiat Finance Canada Limited at A (low) and R-1 (low)

Fiat Finance Canada Limited - Confirms at A (low) and R-1 (low) 








DBRS is confirming the corporate rating of Fiat Finance Canada Limited,
based on its parent and guarantor, Fiat S.p.A. ("Fiat" or "the Company")
at A (low) with a Negative trend and the commercial paper at R-1 (low)
with a Stable trend. The rating action follows the announcement on July
2, 2001, that Italenergia S.p.A., approximately 40% owned by Fiat, is
making a compulsory public tender offer for all outstanding shares of
Montedison S.p.A. and Edison S.p.A., companies with interest in the
power generation business in Italy. 

The transaction has neither cash
impact nor recourse for Fiat. As a consequence, the transaction will
have no impact on the Company's net financial position. Moreover, Fiat
will record capital gains of approximately EUR600 million, after tax,
for transferring its assets in the power generation field in exchange
for equity in Italenergia and the sale of Fenice S.p.A. to Electricité
de France, one of the stakeholders in Italenergia. DBRS expects the
Company to continue pursuing its targets of reducing its net financial
debt position from EUR6.5 billion at the end of 2000 to EUR3.5 billion
in 2001and to EUR1.5 billion in 2002.