The bad news train does not stop at carmaker Nissan (NSANY). The merger with Honda (HMC) fell through, it started throwing out employees, and now, Moody’s is taking aim at the company’s bond rating. But some good news has emerged, and investors are clinging to the hope of rescue as shares surged over 5.5% in Friday afternoon’s trading.

Moody’s said the rating action reflects the Japanese automaker’s weak profitability driven by slowing demand for its aging model portfolio.

Moody's Ratings has downgraded Nissan's (OTCPK:NSANY) credit rating to junk, citing the Japanese automaker's weak profitability, cash flow challenges and worsening outlook. The rating agency pointed to the risks associated with Nissan's (OTCPK:NSANY) restructuring plan,

Moody's Ratings said on Friday it has downgraded its rating of Nissan Motor's credit by one notch to junk status, citing a weak and worsening outlook for the Japanese automaker's credit profile.

Nissan’s debt rating has been reduced to junk status as the automaker faces an assortment of challenges. A Japanese group is reportedly trying to get Tesla to invest, but Elon Musk seemingly downplayed the idea.

Nissan Motor Co.’s credit rating was cut to speculative grade by Moody’s Ratings on Friday, the latest blow to the troubled Japanese carmarker that recently abandoned talks on a tie-up with Honda Motor Co.

Ratings has announced a downgrade of the senior unsecured rating for Nissan Motor Co., Ltd. (TYO:7201) (Nissan (OTC:NSANY)) to Ba1 from Baa3. Concurrently, Moody's assigned Nissan a Ba1 corporate family rating (CFR) and retracted the company's Baa3 issuer rating.

Moody's Ratings said it has downgraded its rating of Nissan Motor's credit to Junk status, on the back of a weak and worsening outlook for the company's credit profile. It slashed Nissan's senior unsecured rating to Ba1 from Baa3 and retained its negative outlook, Reuters noted.

Moody's has downgraded Nissan Motor's credit rating, pushing it into junk status and maintaining a negative outlook. The rating agency cites weak financial performance, restructuring risks, and global trade uncertainties.