Moody’s changes Nidec view to stable

Moody’s Investors Service said it changed the outlook to stable from negative and affirmed Nidec Corp.’s A3 issuer and senior unsecured.

“The affirmation of the A3 ratings and change in outlook to stable from negative reflect Nidec’s progress in reducing debt, as well as in achieving a structural turnaround in its profitability even during the pandemic-induced challenges,” said Ryohei Nishio, a Moody’s analyst, in a press release.

“Nidec’s track record of achieving earnings growth while maintaining a disciplined financial policy will sustain the ongoing improvement in its credit metrics over the next 18 months,” added Nishio.

Moody’s said it forecasts Nidec’s debt/EBITDA leverage will further improve to 2x-2.2x in the next 12-18 months, from 2.6x for the 12 months ended December 2020 and from above 3x in the fiscal year ended March 2020 following some debt-funded acquisitions.

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