March 6 (Reuters) - Global ratings agency S&P Global

said on Thursday it has downgraded Stellantis ( STLA ) to

"BBB" from "BBB+", citing weak margin prospects.

S&P said it expects the price cuts implemented in North

America and Europe late last year coupled with affordability

concerns from buyers to limit the automaker's volume growth and

margin expansion in those markets.

U.S. President Donald Trump on Wednesday gave carmakers a

one-month reprieve from his punishing 25% tariffs on Canada and

Mexico.

Stellantis ( STLA ) thanked Trump for the tariff pause, and pledged

to help the president's America First aim of building more cars

in the United States.

The agency in its report added that it does not expect

Stellantis ( STLA ) to absorb the cost of tariffs and expects the company

to pass on the impact using pricing and possibly shifting some

assembly to the U.S.

The S&P downgrade comes a week after the Franco-Italian-U.S.

automaker gave a cautious outlook for 2025. The company's annual

results took a hit from a slump last year in its U.S. business,

that led to the ousting of Carlos Tavares as CEO.