Nissan Suffers Blow With S&P Cutting Credit to Junk (Correct)

Nissan Motor Co.’s credit rating was slashed to junk by S&P Global Ratings, the latest setback for a carmaker that’s struggled to boost profitability in the years following former chairman Carlos Ghosn’s arrest and the industry’s pivot toward electrification.

The Japanese automaker’s credit rating was cut by a notch to BB+ by S&P, which said a strong recovery in profit and sales was “unlikely” and cited persistent supply chain turmoil and high costs in the industry.

While Nissan recovered from two years of losses and is still targeting an operating profit of ¥360 billion ($2.7 billion) for the ...