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Nissan Credit Rating Downgraded to Junk Status by S&P

The Japanese auto giant’s outlook was still stable, said S&P, citing its financial discipline and sound balance sheet

NIssan is evaluating what to do with its EV business.
A man walks in front of the Nissan logo at Nissan Gallery in Yokohama. Photo: Reuters


Nissan Motor’s credit rating was cut to junk status by S&P Global Ratings on Tuesday, over weak earnings forecasts for the rest of 2023.

S&P slashed Nissan’s rating by one notch to BB+ from BBB-, it said in a statement, a move that placed it below investment grade.


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However it said the outlook was stable based on limited downside risk for profitability and expectations that the Yokohama-based automaker would stick with conservative financial discipline and a sound balance sheet.

“Performance at the company has been sluggish for more than three years,” the rating agency said in the statement, adding that the impact of global supply chain disruptions in key automotive components will likely continue in 2023.

“Also, in the second half of the year, we expect softening demand for new car sales in the US and Europe will pressure sales prices,” it said.


  • Reuters with additional editing by Sean O’Meara


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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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