Nissan, recently in the spotlight due to unsuccessful merger talks with Honda, has had its credit rating downgraded by Fitch.
International credit rating agency Fitch Ratings has lowered Nissan’s long-term credit rating to “BB+” due to its “ongoing low profitability.”
In a statement, Fitch noted that Nissan’s low profitability continues and that its cash flow is expected to remain negative until March 2026.
The statement highlighted that the automaker’s credit rating was downgraded from “BBB-” to “BB+” with a negative outlook.
The negative outlook reflects uncertainties regarding the implementation of Nissan’s restructuring plan. However, the plan is expected to reduce costs to a reasonable level.
Despite this, revenue and costs are likely to be affected by U.S. tariffs and weak new car sales in the U.S. and Southeast Asia.
Fitch also warned that any delays in progress related to this restructuring could lead to further negative rating actions.
Last week, Moody’s also downgraded Nissan’s credit rating.
Japanese automakers Honda and Nissan officially began merger talks at the end of 2024, but earlier this month, they announced that they had ended their merger plans.
Source: Bloomberght/ Prepared by: İlayda Gök