By Kosaku Narioka


Nissan Motor Co.'s credit rating was cut to junk status by S&P Global Ratings, which cited a challenging business environment and the Japanese auto maker's relatively weak profitability.

S&P on Tuesday lowered its long-term issuer credit ratings on Nissan by one notch to BB+ from BBB-, placing it below investment grade.

The rating company said the business environment for the auto industry would likely remain difficult over the next one to two years due partly to supply-chain disruptions and a global economic slowdown.

S&P also said that Nissan's profit margin and sales volume, which had been weak over the past couple of years, were unlikely to swiftly improve to the levels that the rating company had previously assumed.

The rating company said it remains uncertain on whether Nissan will be able to secure a foothold in the rapidly growing global electric-vehicle market.

The rating outlook is stable, S&P said, adding that the company's earnings would likely continue to improve at a moderate pace.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

03-07-23 0340ET