S&P cuts Nike’s credit rating to ‘A’ amid China sales slump and restructuring costs
S&P Global Ratings lowered Nike’s long‑term issuer rating from A+ to A, citing a prolonged turnaround and a sharp revenue decline in Greater China. The agency expects consolidated revenue to fall by more than 7% in fiscal 2027 and projects a roughly 30% drop in China sales for the year. Nike plans to incur about $1 billion in restructuring charges over the next three years while maintaining $11.4 billion of liquidity.
Why it matters
The downgrade may raise Nike’s borrowing costs and could lead to tighter credit terms, affecting investors holding the company’s debt and equity. S&P also expects the firm to suspend share repurchases and trim capital spending to preserve cash.
Key facts
- 1S&P downgraded Nike’s long‑term credit rating to ‘A’ from ‘A+’. investing.com
- 2S&P projects Nike’s consolidated revenue to contract by more than 7% in fiscal 2027. tradingpedia.com
- 3Nike will incur incremental restructuring charges of $1 billion over the next three years. investing.com
- 4Revenue in Greater China fell 26% in the first fiscal quarter. tradingpedia.com
- 5S&P forecasts China revenue to drop approximately 30% for the full fiscal year. benzinga.com
- 6Nike’s total liquidity is $11.4 billion. investing.com
Summary written by AlphAI from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.