(The following statement was released by the rating agency)
TOKYO, Nov 14 - Moody's Investors Service has placed the short- and long-term debt ratings of Nissan Motor Co Ltd (Nissan) and its supported subsidiaries on review for possible upgrade.
The review reflects Moody's acknowledgement of Nissan's continued good operating performance, rapidly improving leverage and cash flow coverage ratios. Moody's further recognizes Nissan's successful programs to introduce new models and its cautious attitude toward incentives, which help improve the value of the "Nissan" brand.
Moody's review will focus on Nissan's ability to sustain its high profitability and operating cash flow. The rating agency will assess the company's capital expenditure programs, dividend/share buy-back plans, how it manages its balance sheet structure, and its liquidity policy.
Moody's will further assess Nissan's strategy to manage adequacy of its worldwide production capacity. Nissan's auto finance activities will also be assessed. The ratings under review include: Nissan Motor Co., Ltd: Baa3 - senior bonds Nissan Motor Acceptance Corporation: Baa3 - MTN program Nissan Capital of America, Inc: Baa3 and Prime-3 - MTN program and commercial paper Nissan International Finance (Netherlands) BV: Baa3 and Prime-3 - MTN program and commercial paper Nissan Motor Co., Ltd., headquartered in Tokyo, is a leading global automobile manufacturer.