S&P rates Nissan notes BBB+

Standard & Poor's said it assigned a BBB+ rating to Nissan Motor Acceptance Corp.'s $600 million 1% senior unsecured notes due March 15, 2016, along with a BBB+ rating to it $400 million 1.8% senior unsecured notes due March 15, 2018.

Nissan Motor Acceptance is a wholly owned subsidiary of Nissan North America Inc., which is a wholly owned subsidiary of Nissan Motor Co. Ltd.

The ratings on Nissan Motor Acceptance reflect the credit strength of the consolidated Nissan group because Nissan Motor Acceptance plays an essential marketing role as a captive finance company providing financial services to Nissan and Infiniti dealers and customers in the United States, S&P said.

Its ultimate parent has a very strong economic incentive to maintain the company's financial soundness and business competitiveness, the agency said.

The ratings also consider the company's satisfactory business risk profile and modest financial risk profile, S&P said.

Rating strengths include the company's solid position in major markets and good geographic and product diversity, the agency said, along with the benefits it gets from operational ties with 43.4%-owner Renault SA and its solid cash flow and conservative financial policy.

Partially offsetting these strengths is its exposure to currency fluctuations, intense competition in the global auto industry and constraints as a result of Renault's weaker credit quality, S&P said.

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