Nissan downgrade seen as start of 'fallen angels' cycle

WASHINGTON : The downgrade of Nissan Motor's credit rating from investment grade to junk by S&P Global on Tuesday marks the start of a cycle that could see as much as $55 billion of so-called"fallen angels" this year, said fund managers.

S&P cut Nissan's rating by one notch to BB+ or junk, saying its profitability will remain weaker than global peers as softening demand for new car sales in the U.S. and Europe would pressure sales prices. Nissan had $10 billion in outstanding U.S. dollar bonds, making it the largest fallen angel since 2020, said BofA Global Research in a report on Tuesday.

Some 0.8 per cent of the investment-grade bond index, or $55 billion, was seen at risk for downgrades and already trading at the BB-rating band or junk bond levels, the report said.

Car Car Latest News, Car Car Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Nissan to overhaul electric powertrains for EVs, hybrids in search of cost cutsYOKOHAMA, Japan : Nissan Motor Co Ltd on Thursday said it will overhaul its approach to powertrains for all-electric and hybrid petrol-electric vehicles as it aims to bring hybrid prices in line with those of petrol-powered cars by 2026.The Japanese automaker said it will use the same components across mo
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »