S&P Global Ratings has downgraded Nissan Motor’s credit outlook from stable to negative, maintaining the automaker’s BB+ rating. The decision comes as the rating agency projects that the Japanese company’s efforts to improve business performance will take longer than anticipated.
The negative outlook reflects concerns that Nissan’s creditworthiness may continue to decline unless the company enhances profitability and secures positive free cash flow. In a statement, S&P highlighted that these improvements are crucial for the company’s financial stability.
S&P also noted that Nissan has increased sales incentives in an attempt to reduce its high inventory levels, which have been exacerbated by a slowdown in car sales, particularly in its key North American market.
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