The international agency Fitch Ratings has downgraded the long-term issuer default rating (IDR) of Japanese automaker Nissan Motor Co. to "BB+" from "BBB-" with a "negative" outlook.
The company's rating is now in the non-investment, or "junk," category.
"The downgrade reflects the persistently low profitability of the company, which is recovering more slowly than we expected," the agency's press release states.
Fitch experts predict that EBIT figures in the automotive division and free cash flow will remain negative until the end of the financial year, which concludes in March 2026. At the same time, the company's strong liquidity and balance sheet serve as a buffer against capital outflows in the short term.
The "negative" outlook reflects uncertainty regarding the implementation of Nissan's restructuring plan.
"We anticipate a reasonable reduction in costs as part of the plan; however, revenues and expenses are likely to be affected by U.S. tariffs, weak car sales in the U.S. and Southeast Asia," the press release states.
Fitch analysts allow for the possibility of negative rating actions regarding the company if there is no progress in implementing this plan.