S&P Global, a provider of stock market intelligence information, has technically downgraded Nissan’s rating to BB+, otherwise known as junk status by global fund managers and investors. First of all, who, or what is S&P Global? S&P Global is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. Here is one example of how transparent S&P Global is. In 2013 the U.S. government filed a $5 billion civil lawsuit against Standard & Poor.

The government, represented by the SEC, accused S&P Global of defrauding investors by understanding risks and inflating ratings associated with mortgage securities. The case was settled two years later despite S&P Global vigorously denying fraud.

However, S&P Global’s damaged reputation survived the impact of fraud. To this day, the company continues to provide “transparent” market information to banks, corporations, universities, institutional investors, insurance companies, investment and commercial banks, wealth managers, and independent advisors.

In its latest “transparent” analysis of Nissan, S&P Global cited a number of outliers such as Japan’s persistently high inflation, a slowing economy global supply chain issues, and increased labor costs that led it to downgrade Nissan to junk status.

According to S&P Global, Nissan’s profitability is set to remain weak compared to its key rivals due to reduced demand in its European and North American sales territories. S&P Global’s rating will inevitably impact Nissan’s Stock market price index. Traders will see it as a sign to effectively buy Nissan shares at a discount price and sell them back at a profit when Nissan’s outlook improves.

To that end, S&P Global sounds like a professionally organized scam, but it continues to be a respected barometer of the global stock market price index. Without such a rating from a company with an over-inflated reputation, stock market traders would not make as much profit buying and selling shares.