Nissan May Be Cut by S&P After Chairman Ghosn's Shock Arrest

(Bloomberg) -- Nissan Motor Co. was placed on negative watch by Standard & Poor's after the shock arrest of Chairman Carlos Ghosn, signaling the carmaker's debt ratings may reduced.

The automaker's profitability may weaken “substantially” in 2018 and 2019 if Ghosn's alleged misconduct damages Nissan's brand enough to hurt sales and its partnership with Renault SA and Mitsubishi Motors Corp., S&P said Tuesday in a statement. S&P has an A rating for the carmaker's long-term debt.

To contact the reporter on this story: Ville Heiskanen in Singapore at vheiskanen@bloomberg.net

To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net

©2018 Bloomberg L.P.

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