Moody's Downgrades Toyota, Honda, Nissan over Coronavirus

Economy

Tokyo, March 27 (Jiji Press)--Moody's Japan K.K. has lowered its credit ratings on Toyota Motor Corp. <7203>, Honda Motor Co. <7267> and Nissan Motor Co. <7201>, citing negative impacts of the outbreak of the novel coronavirus on the automotive sector.

"The automotive sector has been one of the sectors most significantly affected by the shock" from the coronavirus pandemic, given its sensitivity to consumer demand and sentiment, the major credit rating agency said.

The sector is expected to remain vulnerable to the impacts of the coronavirus crisis, it added.

Moody's Japan lowered its long-term rating to A1 from Aa3 for Toyota, to A3 from A2 for Honda and to Baa3 from Baa1 for Nissan.

On Nissan, whose global automobile sales started to decline before the coronavirus pandemic, Moody's Japan said that the company's slump may continue for an extended period amid sagging demand and plant suspensions worldwide amid the virus crisis.

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Jiji Press