Moody's ups ratings of Hyundai Motor, Kia, Hyundai Mobis to 'A3'
The Korea Times - Moody's
Investors Service has upgraded the credit ratings of Hyundai Motor, Kia and
Hyundai Mobis to "A3" from "Baa1" on their improved
competitiveness, their parent company said Tuesday.
It marks the first
time the three companies have received A ratings from the global credit
appraiser, according to Hyundai Motor Group.
Moody's also changed
their outlooks from "stable" to "positive," heralding a
possible ratings upgrade down the road.
the seventh-highest on the appraiser's 21 rating scale. The affiliates of
Hyundai Group are among the eight automobile companies in the world with an A
rating, along with Germany's BMW and Mercedes-Benz, and Japan's Toyota.
The credit appraiser
said Hyundai Motor and Kia's A3 ratings reflect their strong position in the
Korean automotive market, competitive position in key overseas markets, high
degree of geographic diversification, very low financial leverage and strong balance
sheet, as well as their synergies deriving from a high degree of integration in
outlook reflects our expectation that Hyundai Motor's and Kia's profitability
will remain robust, and their substantial financial buffer will stay largely
intact over the next one to two years, notwithstanding the increasing
difficulties in the global automotive industry," Wan Hee Yoo, a Moody's
vice president and senior credit officer, said.
Hyundai Motor and Kia's adjusted EBITA margins to remain robust at around 10 to
11 percent until next year, similar to those of other A-rated global carmakers.