OREANDA-NEWS. Fitch Ratings says Japanese automakers - Toyota Motor Corporation (A/Stable), Honda Motor Co., Ltd (A/Stable) and Nissan Motor Co., Ltd (BBB/Positive) - are likely to have sufficient ratings headroom to weather larger-than-expected sales volume declines and margin erosion, should global growth slow in 2016.

Investments in R&D, new/refreshed products and cost base reductions over the last few years, together with a weak yen, should support their competitiveness. Robust earnings in the financial year to end-March 2014 (FY14) and FY15 have strengthened their capital structures, providing additional ratings headroom.

Fitch expects the three automakers' profitability to remain stable in FY16, supported by a favourable US market, which will offset weakness in Japan, and volatility in Asia and key emerging markets. Cost reductions, a continued weak yen to the US dollar, and solid product pipelines will drive this profitability. We expect all three to maintain solid credit ratios and ample liquidity.

The report titled "Japanese Auto Manufacturers Dashboard 2H15" is available at www.fitchratings.com.