Financial Health & Bankruptcy Risks
Credit ratings in junk territory
Moody’s recently downgraded Nissan’s credit rating to Ba2 (negative outlook), highlighting weak free cash flow and margins. S&P and Fitch have also downgraded Nissan to below investment‑grade with negative outlooks.
Massive restructuring and heavy losses
Nissan recorded a loss between ¥700–750 billion (~$4.9–5.3 billion) for the fiscal year ending March 2025. It is slashing workforce by 20,000 jobs (15% of staff) and closing plants—cost cuts totaling ¥500 billion (~€4 billion) .
Bankruptcy probability contradictory
Macroaxis data shows an 80%+ distress probability, indicating severe risk. In contrast, another analysis cites a much lower 4.7% bankruptcy chance but flags poor solvency and weak interest coverage.
Turnaround Plans & Potential Lifelines
Re:Nissan turnaround strategy
Under new CEO Ivan Espinosa, Nissan is executing an aggressive plan: job cuts, plant closures, and restructuring. He’s also refocusing on EVs, hybrids, and partnerships.
Merger or investment hopes
Talks with Honda aimed at a mega-merger failed, though discussions remain open. Possibility of seeking anchor investors or strategic partnerships (some even speculating interest from the likes of Tesla or Foxconn), though none are confirmed .
Investor Outlook: Why Nissan Is Risky
High financial leverage: Junk ratings signal difficulty in accessing capital and higher borrowing costs.
Execution risk: Massive cuts and restructuring can be disruptive and slow to turn into profitability.
Industry headwinds: The shift to EVs and hybrids is accelerating—Nissan’s lineup has lagged behind competitors.
Geopolitical threat: Tariffs (especially on Mexico-made vehicles) could further squeeze margins
-Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Stock prices, valuations, and performance metrics are subject to change and may be outdated. Always conduct your own due diligence and consult with a licensed financial advisor before making investment decisions. The information presented may contain inaccuracies and should not be solely relied upon for financial decisions. I am not personally liable for your own losses, this is not financial advise.
Credit ratings in junk territory
Moody’s recently downgraded Nissan’s credit rating to Ba2 (negative outlook), highlighting weak free cash flow and margins. S&P and Fitch have also downgraded Nissan to below investment‑grade with negative outlooks.
Massive restructuring and heavy losses
Nissan recorded a loss between ¥700–750 billion (~$4.9–5.3 billion) for the fiscal year ending March 2025. It is slashing workforce by 20,000 jobs (15% of staff) and closing plants—cost cuts totaling ¥500 billion (~€4 billion) .
Bankruptcy probability contradictory
Macroaxis data shows an 80%+ distress probability, indicating severe risk. In contrast, another analysis cites a much lower 4.7% bankruptcy chance but flags poor solvency and weak interest coverage.
Turnaround Plans & Potential Lifelines
Re:Nissan turnaround strategy
Under new CEO Ivan Espinosa, Nissan is executing an aggressive plan: job cuts, plant closures, and restructuring. He’s also refocusing on EVs, hybrids, and partnerships.
Merger or investment hopes
Talks with Honda aimed at a mega-merger failed, though discussions remain open. Possibility of seeking anchor investors or strategic partnerships (some even speculating interest from the likes of Tesla or Foxconn), though none are confirmed .
Investor Outlook: Why Nissan Is Risky
High financial leverage: Junk ratings signal difficulty in accessing capital and higher borrowing costs.
Execution risk: Massive cuts and restructuring can be disruptive and slow to turn into profitability.
Industry headwinds: The shift to EVs and hybrids is accelerating—Nissan’s lineup has lagged behind competitors.
Geopolitical threat: Tariffs (especially on Mexico-made vehicles) could further squeeze margins
-Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Stock prices, valuations, and performance metrics are subject to change and may be outdated. Always conduct your own due diligence and consult with a licensed financial advisor before making investment decisions. The information presented may contain inaccuracies and should not be solely relied upon for financial decisions. I am not personally liable for your own losses, this is not financial advise.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.