Moody's Ratings On Honda-Nissan Merger Business - Integration Is Overall Credit Positive If Executed Successfully
Reuters2024-12-24
Dec 24 (Reuters) - Nissan Motor Co Ltd <7201.T>::
*MOODY'S RATINGS ON HONDA-NISSAN MERGER: BUSINESS INTEGRATION IS OVERALL CREDIT POSITIVE IF EXECUTED SUCCESSFULLY
*MOODY'S RATINGS: EXECUTION RISK IS HIGH, ESPECIALLY FOR HONDA, WHICH HAS LOWER MARGINS IN ITS AUTOMOTIVE BUSINESS COMPARED TO ITS MOTORCYCLE BUSINESS
*MOODY'S RATINGS: LARGER SCALE THROUGH INTEGRATION WILL RESULT IN STRONGER CREDIT QUALITY, PARTICULARLY FOR NISSAN, WHICH CURRENTLY HAS SIGNIFICANTLY WEAKER CREDIT METRICS THAN HONDA
*MOODY'S RATINGS: HONDA'S JPY1.1 TRILLION SHARE BUYBACK IS CREDIT NEGATIVE AS IT WILL ERODE HONDA'S LIQUIDITY OR CREDIT METRICS DEPENDING ON AMOUNT OF CASH OR DEBT USED TO FUND BUYBACK
((Reuters Investor Briefs; email: reutersinvestor.briefs@thomsonreuters.com))
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