“Waste” Category: Fitch reduced Nissan rating

The Fitch Ratings International Agency has reduced the long -interm rating of the Issuer Default (RDE) by Japanese automaker Nissan Motor Co. To “BB+” with “BBB” with a “negative” forecast. Now the company’s rating is in non -investment, or “waste”, category. This is stated in the agency’s press release, Interfax-Ukraine reports.

It is noted that the reduction in the rating reflects the company’s stable low profitability, which is restored slowly by expectations.

According to Fitch experts, EBit unit indicators and free cash flow will remain negative until the end of the financial person, which will end in March 2026. At the same time, strong liquidity and sheets of the company’s balance are protection from the flow of capital in the short time.

The “negative” forecast reflects the uncertainty of implementing the Nissan Restructuring Plan.

A reasonable reduction in costs within the plot is expected, but the influence of American duties, weak sales of cars in USA and Southeast Asia will affect income and cost. Fitch analysts allow the possibility of negative actions in the rating against the company in the absence of development in the implementation of this plan.

Remember, Japanese Honda and Nissan Auto Giants have stopped negotiations with a fusion.

Earlier, the media wrote that Honda and Nissan were organizing the deepening ties, including possible fusion. Their organization will create a company worth $ 54 billion with the annual production of 7.4 million cars, which will be the third largest by a car group worldwide.

Subsequently, it became officially known that Japanese car manufacturers Nissan Motor and Honda Motor had signed a memorandum of understanding to start joining the business by creating a holding company.