This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Nissan Downgraded to BB by Fitch; Expects ~$5bn Loss in Fiscal Year
April 28, 2025
Nissan Motors was downgraded by a notch to BB from BB+ by Fitch. The downgrade reflects worsening market conditions in North America and increasing cost pressures due to newly imposed US tariffs on the automotive sector. According to Fitch, Nissan, which manufactures half of its US sales outside the country, is highly exposed to the tariffs, with estimated EBIT margin dropping by 230bp in FY2026 and a projected 2% decline in unit sales. To address challenges, Nissan has announced a restructuring plan to reduce production capacity, headcount, and expenses, with new CEO Ivan Espinosa expected to unveil further cost-reduction measures. Additionally, Nissan expects a loss of JPY 700-750bn ($4.9-5.3bn) for the fiscal year due to declining sales and asset devaluation, up from an earlier estimate of JPY 80bn ($561mn), according to the statement by the company. The loss includes over JPY 500bn ($3.5bn) in impairments related to assets in North America, Latin America, Europe, and Japan. Sales are projected to be 3.35mn vehicles, below the earlier forecast of 3.4mn. Nissan has been reducing production in the US and offering buyouts to workers. Analysts suggest that Nissan’s product lineup isn’t competitive enough in key markets like the US and China, and despite being an EV pioneer, it lags behind rivals like Tesla and BYD. Last month, the company was downgraded to BB by S&P.
Nissan’s bonds were trading stable with its 5.55% 2029s at 96.7 cents on the dollar, yielding 6.42%.
Go back to Latest bond Market News
Related Posts:
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.