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Corporate Information Hyundai Motor Group Companies’ Ratings Upgraded by Global Top Rating Agencies
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Corporate Information Hyundai Motor Group Companies’ Ratings Upgraded by Global Top Rating Agencies
Corporate Information Hyundai Motor Group Companies’ Ratings Upgraded by Global Top Rating Agencies
SEOUL, August 26, 2024 – Hyundai Motor Company (Hyundai Motor) and Kia Corporation (Kia) have achieved the significant milestone of securing upgraded ratings in 2024 from all three major global credit rating agencies: S&P Global (S&P), Moody's Investors Service (Moody’s) and Fitch Ratings (Fitch).
Hyundai Motor and Kia’s ratings from S&P were upgraded last week to ‘A-’, following Fitch Ratings’ raise to ‘A-’ and Moody’s upgrade to ‘A3’ for both brands in February.
These upgrades solidify both Hyundai Motor and Kia’s positions as global mobility industry leaders, putting the Hyundai Motor and Kia brands on par with Mercedes-Benz, Toyota and Honda – the other major global mobility firms to receive ‘A-grade’ rankings from the top three global credit rating agencies.
| Hyundai | Kia | |||
| Aug '24 | Aug '24 | |||
| Previous Rating | Previous Rating | |||
| S&P Global | A- (Stable) | A- (Stable) | ||
| BBB+ (Positive) | BBB+ (Positive) | |||
| Moody’s Investor Service | A3 (Stable) | A3 (Stable) | ||
| Baa1 (Positive) | Baa1 (Positive) | |||
| Fitch Ratings | A- (Stable) | A- (Stable) | ||
| BBB+ (Positive) | BBB+ (Positive) | |||
Robust performance, flexible capabilities
According to S&P, Fitch and Moody’s, both companies’ ratings upgrades were driven by their robust financial performance, characterized by strong predicted double-digit profit margins and cash flow. Improved product competitiveness of the brands’ diverse vehicle lineups, robust market positioning relating to electrification strategy, and a flexible production approach to meet changing global demands were also key contributing factors.
S&P outlined solid profit and cash flow following “three years of marked enhancement in profitability starting in 2021”, adding, “Its solid portfolio of hybrid and BEVs should help support the company’s competitive position amid the transition to electrification.”
Fitch Ratings previously highlighted Hyundai Motor and Kia's improved brand strength and strong position in key markets, citing “geographical and product diversification, improved profitability and cash generation” as contributing factors to its upgrade.
Moody's Investors Service previously emphasized continued profitability and a strong balance sheet, among other factors.
Seohyeon Kim
seohyeon.kim@hyundai.com
Global PR Strategy & Planning · Hyundai Motor Company
Disclaimer: Hyundai Motor Group believes the information contained herein to be accurate at the time of release. However, the company may upload new or updated information if required and assumes that it is not liable for the accuracy of any information interpreted and used by the reader.
About Hyundai Motor Group
Hyundai Motor Group is a global enterprise that has created a value chain based on mobility, steel and construction, as well as logistics, finance, IT and service. With about 250,000 employees worldwide, the Group’s mobility brands include Hyundai, Kia and Genesis. Armed with creative thinking, cooperative communication and the will to take on any challenges, we strive to create a better future for all.
More information about Hyundai Motor and its products can be found at:
http://www.hyundaimotorgroup.com or Newsroom: Media Hub by Hyundai , Kia Global Media Center (kianewscenter.com) , Genesis Global Newsroom
