Nidec Corp.'s bond spreads have widened amid investor concerns about growing credit risks. The spread on Nidec's notes due July 2032 widened to 223 basis points, its widest since early March, according to Bloomberg data. It has widened by about 39 basis points over the past three trading days.
This follows Nidec's auditor, PwC Japan, withholding an opinion on the company's financial statements released Wednesday. Nidec booked ¥632 billion ($4 billion) in write-downs for the fiscal year that ended in March and charges of ¥482.5 billion related to accounting irregularities leading up to the prior period. The company also disclosed it had breached financial covenants on ¥600 billion of commitment lines from MUFG Bank Ltd. and Sumitomo Mitsui Banking Corp., but the lenders waived their rights to demand immediate repayment.
There was no immediate response to a Bloomberg phone call seeking comment from Nidec.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing