Posted 02/21/2019 11:22:54 CET
TOKYO, Feb. 21 (EUROPE PRESS) –
The credit rating agency S & P has reduced the long-term rating of Japanese automaker Nissan from ‘A’ to ‘A-‘ (good quality, with moderate sensitivity to an adverse environment), given the prospect that the company will have difficulties to improve its profitability in the short term.
The rating firm has also awarded Nissan a short-term rating of ‘A-2’ (good quality, with some sensitivity to the environment) compared to the previous ‘A-1’, while the company’s outlook is situated in ‘stable’.
“We eliminated all the ratings of the surveillance situation with negative implications in which the company was placed on November 20, 2018, because of the alleged financial misconduct of the then president of Nissan, Carlos Ghosn,” he added.
The agency noted that the downgrade of the Japanese car company’s rating is explained by its view that the company will have difficulties to improve its profitability significantly in the next one or two years.
“This is a consequence of the slowdown in sales in key markets such as North America and China and our forecast is that the company will need some time to stabilize its board,” S & P added.