Moody’s Investors Service has downgraded Nissan Motor Co Ltd’s corporate family rating from Ba1 to Ba2, citing ongoing weakness in the company’s financial profile as it attempts to implement a wide-ranging turnaround plan. The global ratings agency has maintained a negative outlook for the Japanese automaker.
According to Dean Enjo, Vice-President and Senior Analyst at Moody’s, the downgrade reflects continued deterioration in Nissan’s credit metrics, particularly in relation to its automotive free cash flow and EBIT margin. These key indicators are expected to remain under pressure, raising concerns about the company’s financial resilience.
Nissan, Japan’s third-largest car manufacturer, recently announced a significant restructuring initiative aimed at restoring profitability. As part of the plan, the company will reduce its global workforce by approximately 15 percent and scale back the number of its production plants worldwide from 17 to 10. These measures come amid persistent challenges in core markets that have adversely impacted performance.
-Reuters
