The Fitch ratings agency noted Thursday by one notch to “BBB +” the rating of long-term debt of Japanese automobile manufacturer Nissan, linked to Renault, given the improvement observed in terms of cash flow and profitability.
This appreciation, which corresponds to the average quality issuers but able to meet their obligations properly, has been accompanied by a “stable outlook”, meaning that the agency has no plans to change it in the short term. “This increase reflects the increased capacity of Nissan to generate cash flows and the expected improvement in profitability,” said Fitch in a statement.
The agency puts forward ” continuous measures to reduce costs, “” greater synergies “with the French group Renault, Nissan’s largest shareholder with 43.4% share, and” a competitive product portfolio “.
Fitch expects “modest growth of sales volume” for the current fiscal year, which ends in late March 2016, the United States, and to a lesser extent Europe and China – “despite difficult market conditions. “- offsetting the” decline in Japan and volatility in emerging countries “
The firm Yokohama (Tokyo suburb) has a” strong image brand and its geographic diversification, “says the agency also welcomes the relocation of Production” in recent years “to reduce its exposure to the exchange rate.
Concern about the role of the state capital of Renault
Nissan recorded a solid first half of 2015-2016, with net profit up 37%. Over the period from April 2015 to March 2016, the group anticipates a net gain of 535 billion yen (€ 4 billion), which would be “a record high”, an increase of 16.9% compared the previous year. Operating profit should rise by 23.8%, to 730 billion yen for the revenue increased by 7.7% to 12.250 billion yen (92.4 billion euros).
With this relatively robust health, Nissan saw a dim view of the recent decision by the French government to go to Renault’s capital, calling himself “concerned” while itself control 15% of his partner, without the right to vote in the key.
Rumors have swelled in recent weeks on an amendment to the covenant to remedy this situation. The shareholder State wants to “influence the strategic decisions” Renault has yet said Wednesday Economy Minister Emmanuel Macron, warning that “under no circumstances will we accept that these balances be revisited.” The Renault-Nissan alliance has sold 8.47 million vehicles in 2014, ranking fourth in the world, including 5.3 million for the only Japanese manufacturer.
Source AFP
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