Nidec Cut to Junk by Moody’s on Concerns Over Accounting Scandal

Nidec Corp.’s debt rating was downgraded three levels to junk by Moody’s Ratings, which cited concerns about the reliability of the company’s financial disclosures.

The Japanese company’s senior unsecured debt rating was cut to Ba3 from an investment grade of Baa3, according to Moody’s. The outlook is negative, and the rating could be under further pressure depending on the findings of an ongoing investigation into potential accounting irregularities, it said.

The downgrade is the latest setback for the company after accounting issues damaged the reputation of the world’s largest maker of mini motors. Late last year, founder Shigenobu ...