Bad news for Japanese auto giant. "Outlook remains negative"

“ The downgrade reflects a deterioration and expectation of further weakness in Nissan’s credit profile , particularly in terms of automotive free cash flow and EBIT margins,” said Dean Enjo, vice president of ratings and senior analyst at Moody’s.

Japan's third-largest carmaker last month unveiled sweeping new cost cuts , saying it would cut its workforce by about 15 percent and reduce the number of global production plants from 17 to 10 as performance in key markets remained under pressure, Reuters reported.

In late May, the company announced that in order to maintain current liquidity, the board decided to immediately implement a savings program, which includes laying off 20,000 employees worldwide, which is expected to save $3.4 billion. It also abandoned plans to build a $1.1 billion electric vehicle battery factory in Japan.

But that's not all. According to Blomberg's reports, citing internal documents from the Japanese corporation, Nissan Motor wants to raise a trillion yen ($7 billion) by selling debt and assets , in order to raise funds to pay off its debt.