Monitoring Desk
TOKYO: The credit rating of Nissan Motor Co Ltd (7201.T) was cut to junk status by S&P Global Ratings Tuesday, which said the Japanese automaker’s earnings will remain weaker than previously assumed, given the prospect of another tough year 2023.
S&P slashed Nissan’s rating by one notch to BB+ from BBB-, said a statement, a move that placed it below investment grade.
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 Nissan has been sluggish”
“Performance at Nissan company has been sluggish for more than three years,” the rating agency said, adding that the impact of world supply chain disruptions in key automotive components would likely continue in 2023.
“Also, in the second half of 2023, we expect softening demand for new car sales in the United States and Europe will pressure sales prices,” it said.
