Hanshin Rating upgrades Hyundai Glovis credit rating to AA+... "Excellent business and financial stability"

Korea Credit Rating, one of the top three credit rating agencies in South Korea, has upgraded Hyundai Glovis' corporate credit rating by one notch. The company was evaluated to have enhanced business stability by diversifying its portfolio across logistics, distribution, and shipping, and to possess a solid financial structure supported by excellent cash generation capabilities.

On the 11th, Hyundai Glovis announced that its corporate credit rating from Korea Credit Rating was upgraded from the previous 'AA' rating to 'AA+'.

Korea Credit Rating's credit rating system consists of 19 grades. Hyundai Glovis received an AA credit rating in 2020, and in this latest evaluation, it was awarded 'AA+' with a stable credit rating outlook. 'AA+' is just below the highest rating (AAA), indicating top-level financial soundness.

Korea Credit Rating cited business and financial stability as the reasons for the rating upgrade. It stated, "Hyundai Glovis is a comprehensive logistics and distribution company with a diversified business portfolio including logistics, distribution, and shipping," and added, "Considering its global logistics network established through 52 domestic and 96 overseas bases, its business stability is excellent."

Furthermore, it noted, "The company has low financial leverage and is expected to transition to a net cash position after 2023 due to net income and surplus cash accumulation, demonstrating strong financial stability," and added, "Despite plans for fixed asset investments exceeding approximately 1 trillion KRW annually, it is expected to maintain its current financial structure based on expanded operating cash flow."

Hyundai Glovis has been recognized for its solid internal management by obtaining the highest level of credit ratings from the three major domestic credit rating agencies, including an AA rating from Korea Ratings and NICE Credit Rating in May this year.

Based on its excellent credit rating, Hyundai Glovis plans to accelerate value-up (enhancement of corporate value). In June, Hyundai Glovis held a 'CEO Investor Day' and presented goals to achieve sales of over 40 trillion KRW and an operating profit margin of 7% by 2030 through large-scale investments exceeding 9 trillion KRW.