Moody's Downgrades Nissan's Credit Ranking; You Probably Know Why

Save for one article about adorable baby ducks, we’ve dumped on Nissan all week. Circumstances being what they are, there wasn’t much of an alternative.

Between a dismal earnings report showcasing a 45 percent decline in annual operating profit for the year ending in March, a forecasted 28 percent drop in profits for this year, corporate strife between the automaker and top shareholder Renault SA, and the ongoing legal troubles with former chairman Carlos Ghosn, it’s been a bad few months.

Nissan’s share price is also in decline for some strange reason, and, following a negative outlook from S&P, Moody’s downgraded the automaker’s credit rating from an A2 to an A3. That’s right, one entire notch lower. That clinches it. Nissan is officially done forever. If the 2008 financial crisis has taught us anything, it’s that you can absolutely trust rating agencies to be arbiters of the future.

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Moody's Upgrades GM Credit Rating To Investment Grade

In another sign that largest American automaker has come back from its 2009 bankruptcy, for the first time since 2005, a credit rating firm has judged General Motors’ corporate debt to be investment-grade. On Tuesday, Moody’s Investors Service raised GM’s rating to Baa3 from Ba1. Baa3 is Moody’s lowest rating that it considers worthy of investment.

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Piston Slap: Not My Ticket, Not My Problem?
Bryan writes:

A question I’d love to see posed to the Best and Brightest: What to do when you’re sent tickets for a car you’re not liable for?

I just got two tickets this morning, for parking infractions that occurred 9.5 years ago, under a previous owner of a car that I bought 9 years ago. I’m not going to pay them just to quell the payment demands, since I consider this extortion.

So, is it better for me to simply never acknowledge receipt of the tickets, since they’re not my liability? Or will that put a black mark on my credit rating? I’m concerned that trying to rationally explain things to the parking enforcement company will only get me stuck deeper in the problem – they don’t care about the truth, they just want to get paid.

This has happened to my parents twice before, so I think it’s a common problem – but I don’t know what the best thing to do is, and I’d love to see how the Best and Brightest have dealt with it.

Sajeev answers:

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  • FreedMike In unrelated news, my left shoulder has gotten used to me patting it with my right hand, while saying “man, were you smart for buying last year before this all got out of hand.”
  • FreedMike I’d like to say I’m outraged and won’t buy anything from GM, but aside from a Stingray or a CT5 V Blackwing, they don’t make a damn thing I want anyway.
  • FreedMike Well, given that the plastic “wrap,” featuring any number of colors ranging from off-the-wall to utterly obnoxious, is now a thing, maybe these guys figured they’d get a piece of the action.
  • SCE to AUX Hyundai still gives 3 years of Bluelink for free, then it's $99/year after that. I like it, and I pay for it.I agree that GM is just finding a way to raise prices, but what happens after 3 years - does OnStar disappear?This isn't different from other moves by mfrs. For instance, many drop the FWD option and standardize on AWD, while raising prices $1500. Few people complain about that.
  • KevinB I have three vehicles with OnStar solely for the purpose of accident response. Everything else they offer is useless to me because Bluetooth pairs my phone and car for hands free calls, Android Auto pairs with my newest car just fine, and if my car gets stolen, I don't ever want to see it again. The monthly diagnostics report in my email are also a good thing, but roadside service is a joke. My older cars, however, will cease operating by the end of the year because 2g/3g will go away. GM has no plans to retrofit an upgrade to these cars. It makes me wonder how many subscriptions they will be losing because of this.