S&P Lowers Nissan Credit Rating to Speculative Grade
Tokyo, March 9 (Jiji Press)--S&P Global Ratings has lowered its credit rating on Nissan Motor Co. <7201> by one notch to BB plus, sending the Japanese automaker into speculative grade for the first time since 2002.
"We've factored in its severe earnings situation more clearly," analyst Katsuyuki Nakai said Thursday in a briefing on S&P Global Ratings' recent rating action.
Nissan's annual vehicle sales are expected to range between 3.4 million and 4 million units for the time being mainly due to disrupted global supply chains, against its capacity target of 5.4 million units, the ratings company said.
Nissan is also lagging behind its rivals in profitability, S&P Global Ratings said though it added that the rating outlook is stable given that the automaker's financial foundation is unlikely to deteriorate.
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