S&P Global Ratings altered Nissan Motor’s (OTC:NSANY) credit outlook to negative from stable while affirming its BB+ rating. This signifies growing concerns regarding the automaker’s ability to improve its financial and operational performance.

Factors Behind the Credit Outlook Change

1. Profitability Under Pressure

   • S&P highlighted Nissan’s struggles with profitability challenges owing to increased sales incentives and high inventory levels in North America, its main market.
   • Declining vehicle sales in North America have contributed to delays in achieving positive free cash flow.

2. Incentives and Inventory Strategies

   • Nissan has raised sales incentives to handle rising inventories, but this could affect long-term profitability and pricing integrity.

3. Creditworthiness Risks

   • S&P warned that Nissan’s creditworthiness may decline further unless the company improves operational efficiency and maintains positive cash flows.

Market Insights and Financial Health

For a thorough understanding of Nissan’s financial condition and potential recovery:

• Access Ratios (TTM) to examine key liquidity and profitability metrics.

To compare Nissan’s performance with its auto industry rivals:

• Review data via the Industry P/E Ratio API for valuation metrics.

Future Outlook for Nissan

Nissan faces crucial challenges in stabilizing its operations while managing inventory issues. Success in these areas will crucially determine its credit rating trajectory and competitiveness within a challenging automotive market.