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Nissan Capital 'F3' CP Rating Withdrawn by Fitch IBCA

14 December 1998

Nissan Capital 'F3' CP Rating Withdrawn by Fitch IBCA - Fitch IBCA -

    NEW YORK, Dec. 11 -- Nissan Capital of America, Inc.'s (NCA)
commercial paper rating is lowered to 'F3' from 'F2' and is withdrawn.  NCA
has not issued commercial paper for some time, and none is currently
outstanding.  Commercial paper had benefited from a keep-well agreement
provided by Nissan Motor Co., Ltd (NML), NCA's ultimate parent.  NCA, a
funding vehicle, had used commercial paper to fund Nissan Motor's North
American operations.  Because of this linkage, NML's credit quality was the
primary determinant of NCA's rating.
    The lower rating reflects a material weakening of Nissan's credit
protection measurements and financial flexibility.  While the company has
renewed its attack on its debt burden and cost structures, poor prospects for
a near-term recovery in the Japanese auto market, on which Nissan is highly
reliant, will make a turnaround more challenging to achieve.  In the meantime,
Nissan is funding a disciplined product program from its own cash flows, using
asset sales to lower manufacturing debt, and funding its financial services
operations in part through securitizations.