R&I downgrades Nidec to 'A+' and places it on monitor for further downgrade

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Rating and Investment Information (R&I) said on the 2nd that it has downgraded Nidec's issuer rating and long-term bond rating from 'AA-' to 'A+', and placed the ratings on its Rating Monitor with a direction toward a further downgrade. It said that the company's management turnaround is only halfway done, and that its auditing firm PwC Japan has once again issued a disclaimer of opinion, making it necessary to scrutinize the risk that the series of problems will further hurt its creditworthiness. Nidec said on September 30 that it recorded an impairment loss of 632.1 billion yen in its fiscal year ending March 2026 and fell into a net loss of 564.6 billion yen. It plans operating profit of 200 billion yen for the fiscal year ending March 2027, but on a fundamental basis this is far below the level of operating profit and profit margin outlook that R&I had assumed before the series of accounting problems came to light, and its earning power is deemed inferior even relative to an 'A+' rating.

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Robotics & Physical AI▼ · 1 stocks
Nidec Corporation
6594
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R&I downgraded Nidec to 'A+' and placed it on monitor for further downgrade after a 632.1bn yen impairment, net loss, and a repeated disclaimer of opinion from PwC Japan.

Off-coverage companies 2

PwC Japan Audit LLCPrivate± Mixed
Regulationrelevance

PwC Japan is cited only as having again issued a disclaimer of opinion on Nidec's accounts, a context mention rather than a development about PwC itself.

Rating and Investment Information, Inc. (R&I)Private± Mixed
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