S&P downgrades Nissan Motor to speculative
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Today the international rating agency S&P Global Ratings reported on the downgrade of the credit rating of the Japanese automaker Nissan Motor by one notch – from BBB- to BB +, which the agency already considers speculative (“garbage”).
The downgrading of the credit rating to speculative means that Nissan will have to pay higher interest on new bonds. Thus, new borrowings in the credit market will cost the company more.
S&P explained its decision by saying that “the company’s results have been lackluster over the past three years,” adding that the effects of global logistics problems are likely to continue this year. In addition, the agency noted that “in the second half of the year, we expect demand for new cars in the US and Europe to weaken, which will put pressure on retail prices.”
Nissan credit rating from another leading agency, Moody`s, located at the level of Baa3, which in the classification of this agency is one step higher than the speculative level.
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