Fiat Chrysler's future finances were given a positive outlook by Moody's.

Moody’s Ratings has given a “positive outlook” to Fiat Chrysler Automobiles based on its expectation the automaker will continue to improve its overall financial position.

Continuing improvement in FCA’s financial “metrics” in the current fiscal year to help trigger a possible upgrade from the ratings agency to Ba1. FCA’s current rating is considered investment grade but the upgrade would help lower the interest rates the company pays on the money it needs to borrow for continuing business operations.

“The positive outlook also assumes that FCA’s financial policy is to remain conservative with no excessive dividend payouts, a more moderate gross leverage than in the past, a solid liquidity profile and some operational resilience in case of a weakening of FCA’s markets,” reads the Moody’s report.

Along with the revised outlook, Moody’s reaffirmed the Ba3 rating of FCA’s senior unsecured notes and the Ba2 rating of the senior secured term loan B issued from subsidiary FCA US LLC.

(Ford smacked with ratings cut by Moody’s. Click Here for the story.)

Mike Manley, new CEO of FCA, appears to be getting some good news early in his term as Moody's is positive about the company.

Seeking Alpha, an investment website, noted that FCA’s strong U.S. sales in the first half of 2018 and popular new products have enhanced the company’s outlook.

Despite rejecting, KKR’s offer of €5 billion euros for Magneti Marelli, FCA’s parts unit, the bid indicates the potential buyer saw underlying value in the parts business.

Fiat and Chrysler were two laggards in their own countries that were saved by a successful marriage. Since coming together in 2014, they have gone from strength to strength. Fiat Chrysler Automobiles N.V. has increased net income from 514 million euros in 2014 to 3.49 billion euros in 2017.

(Click Here for more about FCA posting lower than expected earnings as it mourns Marchionne.)

In the first six months of 2018, however, revenues have slowed, costs have risen, and net profit has actually fallen marginally from 1.796 billion euros to 1.775 billion in the first half of 2017 – a reduction of €21m. At this rate, 2018 will not be showing the same rate of growth as in previous years, the Seeking Alpha analysts said.

FCAU put the increase in costs down to three main reasons. The first is higher product costs for content enhancements. The second is a fall in high-margin Maserati sales. The third is exchange rate erosion.

Of the three, Maserati sales should bounce back in second half since the fall in first half was mainly due “to the impact from import duty reductions in China applicable from July 1 delaying wholesale and retail buying decisions.”

(To see what the new 5-year-plan holds for Jeep, Ram, Alfa and Maserati, Click Here.)

Despite narrowing margins, sales continue to rise in the company’s core markets of North America, Latin America, and Europe, which combined account for over 90% of FCA’s total turnover.