S&P downgrades Honda

S&P said it downgraded the issuer and issue ratings of Honda Motor Co. Ltd. and its overseas subsidiaries to A- from A.

“In our view, significant downward pressure on Honda Motor’s earnings is likely to continue for the next one to two years. Business conditions in its core markets are likely to be extremely challenging in light of an expected large decline in new car sales; We expect a 15%-20% drop in the U.S. and an 8%-10% drop in China in calendar 2020,” S&P said in a press release.

The agency removed all the credit ratings from CreditWatch with negative implications, where it placed them on March 25.

The outlooks are negative.

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