Nice and then Korea Ratings too... Hyundai Capital Credit Rating Raised Consecutively

Upgraded from 'AA Stable' to 'AA Positive'
Impact of Hyundai Motor Group's Earnings Growth Trend

[Asia Economy Reporter Minwoo Lee] Credit rating agencies have consecutively upgraded Hyundai Capital's credit rating. This is due to the solid performance of its major client, the parent company Hyundai Motor Group, as well as Hyundai Capital's stable operating results and financial soundness.

Korea Ratings upgraded Hyundai Capital's senior unsecured bond rating outlook from 'AA Stable' to 'AA Positive' on the 31st of last month. This came about a month after NICE Investors Service raised Hyundai Capital's rating to the same level on the 4th of last month. This contrasts with the recent sentiment in the capital industry, where concerns about economic recession and real estate project financing (PF) investment risks have been growing.

Yoon Heekyung, Senior Researcher at Korea Ratings, explained, "The strengthening bond between Hyundai Capital and Hyundai Motor Group is expected to enhance overall support from Hyundai Motor Group. We also comprehensively reflected the fact that Hyundai Capital's operating performance and financial soundness are being maintained stably."

Hyundai Motor and Kia recorded operating profits of 9.8198 trillion KRW and 7.2331 trillion KRW respectively last year, representing increases of 47.0% and 42.8% compared to the previous year. With the semiconductor supply shortage resolved, factories are operating at normal levels, and due to strengthened product competitiveness, high pent-up demand, and favorable KRW-USD exchange rates, a solid performance trend is expected to continue. Since Hyundai Capital is the exclusive financial company of Hyundai Motor Group, which holds 59.7% and 40.1% stakes in Hyundai Motor and Kia respectively, totaling 99.8%, their growth is also expected to benefit Hyundai Capital.

A Hyundai Capital official stated, "This is the result of once again being recognized for our strategic importance and value as the sole captive financial company of Hyundai Motor Group. We will further accelerate providing optimized financial services to Hyundai Motor and Kia customers."