Nissan-Honda integration could boost credit for Nissan, compared to Honda: Moody's
Moody's Ratings.
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Nissan Motor Co Ltd and Honda Motor Co Ltd on December 23 inked a memorandum of understanding (MoU) to begin talks and considerations for a business integration between the two businesses through the creation of a joint holding business.
The report noted that Nissan will benefit the most from a credit perspective, while Honda faces more risk due to its stronger credit profile.
«The proposed Honda-Nissan business integration is overall credit positive if executed successfully. We believe that a larger scale through integration will result in stronger credit quality, particularly for Nissan, which currently has significantly weaker credit metrics than Honda,» the Dean Enjo, VP-Senior Analyst, Moody's Ratings stated.
He stated that the integration would allow the automakers to share research and development (R&D) costs, which will be beneficial for the introduction of new electrified powertrain models in regions such as China.
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