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

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.

Moody’s cut Nissan’s senior unsecured debt, reports note, from Ba1 to Baa3, which is “the lowest investment grade” rating the company has. Moody’s also kept a negative rating outlook overall, leaving Nissan’s debt rating at junk status,

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,