The rating agency Standard and Poor’s (SP) downgraded Monday 2 notches to “BB-” long-term credit rating of Japanese automaker Mitsubishi Motors, because data makeups on consumption of its vehicles.
SP also leaves the threat of another sanction maintaining a negative outlook and insisting that the governance of Mitsubishi Motors (which Nissan has become the first shareholder) was the least “deficient”, with two scandals since the early 2000s.
“the falsification of data and its impact exert downward pressure on our assessments of risk profiles commercial and financial of the company, “justifies the agency in a statement
before deciding further, S & amp;. P says it wants to” examine the impact of fraud on auto sales Mitsubishi Motors in Japan and abroad, as well as the operational performance of the company, the levels of its working capital and its cash flows “
S & amp;. P insists that the risk is even higher for Mitsubishi Motors the manufacturer has a limited range of cars, mini one hand (less than 660 cm3) and 4×4 models sporting the other.
the compensation and any other pecuniary penalties which the group is exposed could place them in a difficult financial situation
S & amp;. P adds, however, “if carried out, an injection planned capital by Nissan and a strategic alliance between the two companies could somewhat support the business and financial risk profiles of Mitsubishi Motors “.
” But it will take more time before we can reflect this in our rating, “she warns, saying he wanted to focus attention” on the details and timing of cooperation in purchasing, sharing the costs of research and development, and joint use of facilities. ”
Mitsubishi Motors had on April 20 expressed data manipulations on four models to beautify their energy performance. The group then acknowledged using unapproved tests in Japan for 25 years, “doubts” on many models.
Nissan announced last week its intention to assist his compatriot and already a partner, by injecting funds to take 34% of its capital. This is a plan that still needs to be confirmed in view of the real state of the situation of Mitsubishi Motors.
kap / spi
isinJP3899800001MITSUBISHI MOTORS
05.16.2016 10:45:44 – Tokyo, May 16, 2016 (AFP) – AFP © 2016
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