Earlier on Friday, Moody’s downgraded the credit score of Nissan to garbage, saying the choice “reflects Nissan’s poor success driven by slowing demand for its age type portfolio”.
Nissan reported a 93 percent decline in first-half gross revenue last year, leading to thousands of job cuts, and the company then anticipates an annual decline of more than US$ 500 million.
We do not anticipate a good free cash flow until at least 2026, according to Moody’s, even if the company effectively implements its reform plan with cost reductions and innovative model releases.
It gave Nissan a” Ba1″ standing, a group with great credit risk that is frequently characterized as bad.
Instead of a merger plan announced in December to become a subsidiary, the merger negotiations between Honda and Nissan evidently broke down.
According to The Financial Times, many Nissan board users were aware of the new plan.
Foxconn, a Taiwanese electronics company, approached Nissan repeatedly to purchase a lot stake, according to reports in December.
The consolidation negotiations were then put off until after Renault’s 35 % interest in Nissan was revealed, according to reports.
” The proposal envisions a consortium of investors, with Tesla as the largest backer, but also includes the possibility of a minority investment by Foxconn” , , the Financial Times said.