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S & P downgrades Nissan Motor credit rating

Standard & Poor on Monday downgraded its credit rating for Nissan Motor Co., warning that profits at Japan's third largest automaker would remain under heavy pressure this year.

S & P lowered its long-term debt rating to "BBB" from "BBB-plus", saying the group's finances had deteriorated amid the global auto industry slump.

"Standard & Poor's expects profitability at Nissan to remain under considerable pressure in fiscal 2009, as global economies and auto markets are not expected to recover soon," the ratings firm said in a statement.

Nissan has forecast a net loss of 265 billion yen (2.8 billion dollars) in the financial year to March -- a dramatic reversal from the previous year's profit of 482 billion yen.

Earlier this month the automaker, which is 44 percent owned by France's Renault, announced 20,000 job cuts, blaming the global economic crisis.