Honda shock from Fitch to Nissan!

International credit rating agency Fitch Ratings downgraded Nissan's long-term credit rating to "BB+" due to "persistent low profitability."

Fitch Ratings said Nissan's low profitability continues and its cash flow is expected to remain negative until March 2026.

In this context, it was stated that the automotive company's credit rating was downgraded from "BBB-" to "BB+", and it was emphasized that the outlook was negative.

The statement noted that the negative outlook reflected uncertainties regarding the implementation of Nissan's restructuring plan, and underlined that the plan in question was also expected to reduce costs to a reasonable extent.

However, revenue and costs are likely to be affected by U.S. tariffs and weak new car sales in the U.S. and Southeast Asia, it said.

The statement also emphasized that any delay in progress in this regard could lead to negative rating action.

Moody's also downgraded Nissan's credit rating last week.

Japanese automakers Honda and Nissan officially began merger talks at the end of 2024 and announced this month that they had finalized their merger plans.