Nissan Motor Co's automobile business is expected to be debt free for the first time in three years in fiscal 2010, with its net cash position likely being about 100 billion yen ($1.09 billion), the Nikkei business daily reported.
Nissan aims to slash its fundraising costs by raising its credit rating to meet its monetary needs for the development and mass production of next-generation environmentally friendly vehicles, the Nikkei said.
The automaker aims to accumulate cash earned via its core business by adjusting inventories and through other measures, while at the same time reducing interest-bearing debt, the business daily said.
The company's current credit rating of BBB by Standard & Poor's is lower than that of Toyota Motor Corp, which has AA rating, and Honda Motor Co with A-plus, the paper added.
Nissan, which will start mass-production of electric cars from this fiscal year, will seek an A rating from S&P in order to obtain funds cheaply, the Nikkei said.