S&P Revises Nissan’s Credit Outlook to Negative Am…
From Financial Modeling Prep: 2025-01-14 05:33:39
S&P Global Ratings has downgraded Nissan Motor’s credit outlook to negative, citing concerns about the automaker’s financial and operational performance. The BB+ rating was affirmed.
Nissan’s profitability is under pressure due to higher sales incentives and elevated inventory levels in North America, impacting its ability to generate positive free cash flow.
To address rising inventories, Nissan has increased sales incentives, but this may affect its long-term profitability and pricing strategy.
S&P warns that Nissan’s creditworthiness could deteriorate unless it improves operational efficiencies and consistently generates free cash flow.
Nissan is in a critical period to stabilize operations and address inventory challenges, which will impact its credit rating and competitiveness in the automotive market.
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