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NISSAN CAPITAL OF AMERICA COMMERCIAL PAPER RATED 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Feb. 12 /PRNewswire/ -- Nissan Capital of America, Inc.'s (NCA) commercial paper is rated 'F-1' by Fitch. The company may issue up to $5.5 billion under two programs, and approximately $1.1 billion is currently outstanding. The commercial paper is always fully supported by committed and uncommitted bank lines from a strong bank group, and enjoys the benefit of a keep well agreement provided by Nissan Motor Co., Ltd. NCA uses the proceeds of commercial paper to fund its North American operations. This is the first time that Fitch has rated Nissan.
 NCA's parent, Nissan Motor, is the world's fourth largest automaker, with a tri-polar organization implanted in the world's three largest and highly competitive auto markets: Europe, the U.S., and Japan. With only a gradual recovery anticipated in its major markets, Nissan is making a concerted effort to enhance its earning power. Its three key priorities are to reduce costs and raise productivity; to strengthen domestic sales; and to advance the self-reliance of its overseas operations. Numerous product and market strategies are in place to support these efforts. With its earnings currently under pressure, the company eliminated its interim dividend to underscore its efforts to conserve cash and return to profitability quickly.
 Looking ahead, pressures on Nissan's balance sheet are expected to relax. The company has completed an aggressive expansion program and capital outlays are now declining from their record levels, easing pressures on cash flow. Although consolidated debt leverage is considered somewhat aggressive at 65 percent, approximately 40 percent of debt is related to supporting dealer and retail financing. The company has the option of securitizing some of these receivables to manage its balance sheet and debt leverage. Concerns regarding debt levels and leverage are also mitigated by the company's strong reserves of cash and marketable securities. Even after erosion in the market value of its investment securities and real estate holdings, Nissan enjoys high levels of unrealized appreciation in these assets.
 Nissan Motor Co., Ltd., incorporated in 1933 and headquartered in Tokyo, Japan, is the world's fourth largest auto producer. NCA is based in New York City.
 -0- 2/12/93
 /CONTACT: Mary Anne Sudol, CFA of Fitch, 212-908-0562/


CO: Nissan Capital of America, Inc. ST: New York IN: SU: RTG

SH -- NY009 -- 6055 02/12/93 09:21 EST
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Publication:PR Newswire
Date:Feb 12, 1993
Words:387
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