TOKYO -- Nissan Motor Co.s international credit rating fell a notch last week because of concerns over declining cash flow. Standard & Poors Ratings Services lowered Nissans long-term corporate credit and senior unsecured debt ratings to BBB from BBB+.
The rating keeps Nissan credit within investment grade. Nissan CEO Carlos Ghosn said that the automaker will lose about $2.9 billion in the 2008 fiscal year, which ends March 31.
He said Nissan is cutting global costs in response, including the elimination of 20,000 jobs.
In a report, Standard & Poors said it thinks Nissans profitability will remain under pressure in fiscal 2009.
According to Standard & Poors, as of Dec. 31, Nissan had cash of 470 billion yen, or about $5.14 billion.