AutoBeta(AutoBeta.net)05/24 Report--

Today, the famous US bond rating agency Moody's downgraded Nissan's credit rating, downgrading the previous "A2" to "A3", adding that Nissan's outlook is negative. The reason for the downgrade was that the company's North American performance data were worse than market expectations, which cast a shadow over Nissan, which adjusted its business after the decline.

Nissan's annual operating profit fell 45 per cent in the year to March and forecast a 28 per cent drop in profits for the current fiscal year, affected by the arrest of former chairman Carlos Ghosn and its declining performance in North America.

"the downgrade reflects Nissan's continued decline in profitability, mainly due to weak sales in North America," Yanase, vice president of Moody's, said in a statement. Nissan's US sales fell 8.4 per cent to 461549 vehicles in the year to April, with the overall market down 3 per cent, according to the data.

While Nissan's new strategy focuses on profit margins rather than sales growth and updates older models to boost brand value, the rating agency expects the adjustment to take "years". "it can be seen from Nissan's negative outlook that Nissan will face challenges from all sides, implementing a new global business strategy, reforming the company's management structure and stabilizing its alliance with Renault," Moody's said.

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