Taiwan Ratings lowers credit rating on Yulon MotorBy Crystal Hsu / Staff reporterTaiwan Ratings Corp (台灣信評) yesterday lowered its long-term issuer credit rating on Yulon Motor Co (裕隆汽車) from “twA-” to “twBBB+,” saying its profitability could remain weak amid ongoing business restructuring and a likely weaker dividend payout from affiliate Yulon Nissan Motor Co (裕隆日產). Yulon’s debt leverage has nearly doubled after its consolidation of HAITEC and the prospect of a significant improvement over the next one to two years is limited, Taiwan Ratings said. Yulon Motor plans to lower its debt leverage in the next one to two years by selling some of its financial assets and industrial land. Furthermore, weak auto demand in China could stifle Yulon’s efforts to improve its EBITDA next year, Taiwan Ratings said. Dongfeng Motor resumed sales of Nissan-branded vehicles in February in China, where the pandemic appears to be under control, Taiwan Ratings said.
