July 16 - --Standard & Poor's Ratings Services believes global automakers and truckmakers won't find recovery smooth sailing in 2012, according to a report published today on RatingsDirect, titled "Global Automakers And Truckmakers On A Bumpy Path, With Credit Quality Varying By Region." The outlook for passenger vehicle sales reflects an economic outlook that varies by region and so the outlook for credit quality also varies.
Many global automakers and suppliers entered 2012 with generally healthy profits and cash balances. Some have credit measures that provide flexibility in the ratings that we consider appropriate, given an uncertain economic outlook. We continue to view credit quality in the global auto and truck sector as stable, despite the slow recovery in the U.S., a recession in Europe, and slower growth in Asia and South America.