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New Holland Credit $1.5B CP Rated 'F1' By Fitch IBCA -- Fitch IBCA Financial Wire --

31 March 1998

New Holland Credit $1.5B CP Rated 'F1' By Fitch IBCA -- Fitch IBCA Financial Wire --

    NEW YORK, March 31 -- New Holland Credit Co. LLC's (NHCC)
commercial paper program is rated 'F1' by Fitch IBCA.  This program replaces
the program previously conducted by Fiat Finance USA Inc., which was also
rated 'F1'.  NHCC may issue as much as US$1.5 billion of commercial paper,
which is irrevocably guaranteed by Fiat S.p.A., its ultimate parent company.
Outstanding commercial paper is fully supported by committed backstop
facilities.  NHCC will use the proceeds of commercial paper issuance primarily
to finance New Holland N.V.'s retail receivables arising from agricultural
equipment sales.
    The ratings reflect profit growth in both Fiat and New Holland N.V.'s core
operations, improved leverage and creditor protection, and progress in
diversifying the geographic footprint of the businesses.  Fiat's aggressive
spending plan has upgraded auto, truck and agricultural equipment product
offerings, which have translated to market share improvements.  The company
continues to extend its presence in the growing, but more volatile, markets in
Latin America, Central Europe and Asia to lower its dependence on mature
Italian and Western European demand.  Fiat has attacked its structural costs
and continues to lower its break-even points in core operations.  Fiat has
generated positive cash flow after capex since 1994 and Fitch IBCA expects
surplus cash generation to continue as capex stabilizes at manageable levels
going forward.
    Concerns center around Fiat's ability to raise and sustain profitability
in its auto operations -- a difficult task in the face of intense competition
in its key European and Brazilian markets.  Despite its improved financial
profile, profitability in the all-important auto sector still lags some its
peers.

SOURCE  Fitch IBCA, Inc.