S&P Global Ratings has downgraded Nissan Motor's credit outlook from "stable" to "negative" while maintaining its BB+ rating. The agency anticipates that the Japanese automaker will require more time to enhance its business performance.
The revised outlook does not consider any potential collaboration between Nissan and Honda. S&P stated that the negative outlook reflects concerns about the company's profitability and the ability to maintain positive free cash flow. If these issues are not addressed, Nissan's credit rating may continue to deteriorate.
Additionally, Nissan is facing challenges in its primary market, North America, where car sales have slowed, leading to increased inventory levels. To address this, the company is implementing sales incentives to reduce high inventory levels.
