Nissan Rating Downgraded Amid Profitability Concerns
Fitch Ratings has downgraded Nissan Motor's rating to junk-status BB+ from BBB-, citing the automaker's persistently low profitability and delayed recovery trajectory. The move follows similar downgrades by Moody's Ratings, which cut its rating of Nissan by one notch to non-investment grade Ba1, and S&P Global Ratings, which revised its credit outlook to negative. As a result, Fitch also maintained a negative outlook for Nissan credit.
- This downgrade highlights the vulnerability of even the largest and most established automotive companies to declining profitability, underscoring the need for meaningful industry reforms.
- What will be the long-term implications for Nissan's competitiveness and market value in the face of sustained profit losses?