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Nissan's junk-rated debt has made it increasingly difficult for the company to access credit, with banks demanding higher interest rates to lend to the automaker. This, in turn, makes it even harder for Nissan to pay back its mounting debt, creating a vicious cycle that could ultimately lead to its downfall.
The Perfect Storm
The combination of Nissan's high debt levels, declining sales, lack of competitiveness in the EV market, and limited access to credit paints a bleak picture for the company's future. Unless a major intervention or a strategic acquisition by a Chinese conglomerate occurs, the most likely scenario for Nissan within the next 2 years is bankruptcy.