Hyundai Motor Company and Kia have both achieved the highest credit ratings from all three major domestic credit rating agencies. This is a result of their high profitability and financial soundness.
According to Hyundai Motor on the 3rd, Korea Ratings upgraded Hyundai Motor's credit rating to the highest 'AAA' among 20 credit ratings on the 1st. This is the first time in five years since November 2019 (AA+) that Korea Ratings has raised Hyundai Motor's credit rating.
Hyundai Motor's credit rating outlook was evaluated as 'stable.'
Korea Ratings stated, "Hyundai Motor holds competitive powertrain capabilities in the global automobile market," and added, "Thanks to fundamental improvements in the profit structure and favorable exchange rate effects, it will maintain profitability higher than the market average."
They also added, "It has entered a 'virtuous cycle' where cash flow improvements lead to increased investments, resulting in simultaneous strengthening of future competitiveness and improvement in financial stability."
Earlier, Hyundai Motor had also received the highest AAA credit rating from NICE Investors Service and Korea Investors Service, two of the three major domestic credit rating agencies, in April and September respectively.
Kia obtained the AAA credit rating from NICE Investors Service and Korea Investors Service on the 1st. This follows the AAA rating it received from Korea Investors Service in September.
This is the first time in Kia's 80-year history that it has received the highest credit rating from all three major domestic credit rating agencies.
NICE Investors Service and Korea Ratings explained the background of Kia's rating selection, stating, "Kia is solidifying its position in the global finished vehicle market based on a firm status in the global market, improved product competitiveness, and brand awareness."
Hyundai Motor Company and Kia have also received high credit ratings this year from the three major global credit rating agencies: Moody's in the U.S., Standard & Poor's (S&P), and Fitch in the U.K. These three agencies conduct joint credit evaluations for Hyundai Motor Company and Kia.
Six months after receiving an A rating from Moody's and Fitch in February, Hyundai Motor Company and Kia also saw their S&P credit rating raised to A in August.
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