Business News
Japanese car makers face threat of lower credit ratings
Apr 26, 2011, 3:12 GMT
Washington - The beleaguered Japanese car industry was facing increasingly intense scrutiny on Wall Street after Standard & Poor's (S&P) rating agency Monday lowered its outlook due to quake- and tsunami-related production stoppages.
The debt-rating agency revised its outlook to negative from stable for Toyota Motor Corp, Honda Motor Co, Nissan Motor Co, and three of Toyota's key suppliers, Aisin Seiki Co Ltd, Denso Corp and Toyota Industries.
The agency did not, however, change their current ratings of the companies, the Detroit News reported online.
S&P said it was concerned that Japan's extended production stoppages could undermine its standing in key markets.
Toyota said Friday that its production at home and abroad was not expected to return to normal until November or December, after its supply chains were disrupted by the March 11 earthquake and tsunami.
Last month's disasters left about 14,000 confirmed dead and more than 13,000 missing.
The rating agency estimated that Japanese automotive output is at around half of normal levels.
'In our opinion, extended production cuts may erode Japanese automakers' market shares and competitive positions in the longer term,' S&P said.
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