Nissan faces junk credit, record $1.6B debt projected to reach $5.6B; bankruptcy looms by 2026?

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Nissan’s financial stability is crumbling. With a junk credit rating and debt projections skyrocketing from $1.6 billion in 2025 to $5.6 billion by 2026, the automaker’s future is uncertain.

The company’s credit risk has surged, prompting warnings from major ratings agencies like S&P Global and Japan Credit Rating Agency. Meanwhile, Nissan struggles with production cuts and reduced profit forecasts, raising doubts about its ability to maintain its ratings.

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To further complicate matters, Nissan is laying off 9,000 workers and slashing 20% of its manufacturing capacity to cope with worsening industry conditions. This move, coupled with rising debt, has experts questioning whether Nissan can avoid bankruptcy.

The company faces a monumental challenge in stabilizing its finances. With mounting debt and shrinking workforce, Nissan’s next moves will be critical in determining if it can survive the financial storm.

Sources:

https://finance.yahoo.com/news/nissans-bond-risk-jumps-as-ratings-firms-warn-on-debt-score-2024-11-10

https://finance.yahoo.com/news/nissan-faces-record-debt-bill-2024-11-12

https://fitchratings.com/research/corporate-finance/nissan-motor-at-bbb-outlook-stable-2024-11-15


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