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Nissan Rating Lowered, Production Cuts to Follow

Nissan Motor Acceptance Corp received a rating downgrade this week, going from BBB to BBB- as of July 3, 2020. The company’s plans to shut down some of its overseas plants caused S&P Global Ratings to assume a higher risk assessment.

S&P issued the downgrade to its long-term credit ratings due to the auto company’s lack of healthy cash flow while facing increased production costs.

The Japan-based automaker remains under financial pressure stemming mostly from the adverse effects of the Covid-19 pandemic.

Production costs may rise due to the plant shut downs.

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