0550 GMT - Nidec Corp.'s progress in re-establishing effective internal controls over financial reporting is going to be crucial following its disclosure of the results for the fiscal year ended March, says Ryosuke Kaneko at Mitsubishi UFJ Morgan Stanley Securities in a note. Nidec recorded a 632 billion yen impairment loss in its latest fiscal year, which was marred by an accounting scandal. While impairment doesn't involve cash outflow, a significant drop in shareholders' equity lowers the capacity to absorb losses and could lower its creditworthiness, the senior credit analyst says. The risk of credit rating cuts has increased, Kaneko says. A Nidec press conference later Thursday should offer a good opportunity to assess the new management's stance on rebuilding the company, he says.