(Feb 26): Nissan Motor Co’s credit is now graded as junk by all three major credit raters, following a second downgrade in a matter of days.

Fitch Ratings cut the carmaker to BB+ from BBB-, citing weak earnings and uncertain prospects for recovery. Moody’s Ratings downgraded Nissan last week, while S&P Global Ratings has had the manufacturer at speculative grade since March 2023.

“The downgrade reflects Nissan’s persistently low profitability, with a delayed recovery trajectory against our expectations,” Fitch analysts led by Satoru Aoyama wrote in a report Wednesday. “We expect profitability to remain pressured over the next one to two years.”

Nissan executives earlier this month cut forecasts for revenue and operating income and warned they expect to post an ¥80 billion (US$535 million or RM2.4 billion) net loss for the fiscal year ending in March. The weak results heaped more pressure on a management team that will need to find another lifeline after negotiations to combine with Honda Motor Co fell apart.

Uploaded by Magessan Varatharaja