Moody’s said the rating action reflects the Japanese automaker’s weak profitability driven by slowing demand for its aging model portfolio.

Moody's Ratings has downgraded Nissan's (OTCPK:NSANY) credit rating to junk, citing the Japanese automaker's weak profitability, cash flow challenges and worsening outlook. The rating agency pointed to the risks associated with Nissan's (OTCPK:NSANY) restructuring plan,

The bad news train does not stop at carmaker Nissan (NSANY). The merger with Honda (HMC) fell through, it started throwing out employees, and now, Moody’s is taking aim at the company’s bond rating. But some good news has emerged, and investors are clinging to the hope of rescue as shares surged over 5.5% in Friday afternoon’s trading.

Moody's Ratings said on Friday it has downgraded its rating of Nissan Motor's credit by one notch to junk status, citing a weak and worsening outlook for the Japanese automaker's credit profile.

Nissan Motor Co.’s credit rating was cut to speculative grade by Moody’s Ratings on Friday, the latest blow to the troubled Japanese carmarker that recently abandoned talks on a tie-up with Honda Motor Co.

Moody's has downgraded Nissan Motor's credit rating, pushing it into junk status and maintaining a negative outlook. The rating agency cites weak financial performance, restructuring risks, and global trade uncertainties.