TOKYO -- Nissan Motor Co. said on Wednesday it planned to issue up to $1.5 billion of commercial paper (CP) in the United States, its first CP issue there in seven years.
A Nissan spokesman said the company began issuing commercial paper last month as part of a framework that allows it to raise up to $1.5 billion, but he declined to comment on how much has been issued to date.
The issuance follows a recent upgrade to Nissan's credit rating and reflects the company's improved earnings and financial health. The higher rating has encouraged the automaker to diversify its procurement of funds.
Moody's Investors Service upgraded the short-term ratings of Nissan and its subsidiaries in March from P-3 to P-2, the second-highest of the credit rating agency's three investment-grade ratings.
Nissan Motor Acceptance Corp., a U.S. financing arm of the auto maker, is the issuer of the commercial paper.