S&P cuts Nissan to BBB

S&P said it downgraded by one notch to BBB its long-term issuer credit ratings on Nissan Motor Co. Ltd.

The agency also took the same actions on our ratings on the company's overseas subsidiaries. All the ratings on the companies remain on CreditWatch with negative implications, where S&P placed them on March 26.

Our downgrades are based on our view that the tough business conditions and the expectation of restructuring costs have diminished the likelihood that Nissan Motor's EBITDA margin will recover in fiscal 2020 (ending March 31, 2021) to levels we previously assumed,” S&P said in a press release.

The agency said it plans to resolve the CreditWatch placements after evaluating the outlook of Nissan’s performance and financial health for the coming one to two years, based on pandemic conditions and the company's likely performance from fiscal 2020 onward.

The subsidiaries downgraded include Nissan Motor Acceptance Corp. and Nissan North America Inc.

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