Honda-Nissan Deal Is Credit Positive, Honda Faces Risks: Moody’s
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The proposed business integration of Honda Motor Co. and Nissan Motor Co. is positive overall for the credit quality of the two Japanese automakers, but it carries risks especially for Honda, according to Moody’s Ratings.
A larger scale through integration will result in stronger credit quality, particularly for Nissan, which has significantly weaker debt metrics of the two, wrote Dean Enjo, VP-senior analyst at Moody’s. And a deal would allow the automakers to share research and development costs.