Hyundai Glovis' Moody's Credit Rating Outlook Upgraded to 'Positive'

Hyundai Glovis announced on the 26th that its corporate credit rating outlook from the international credit rating agency Moody's has been revised from 'Stable' to 'Positive.'

The 'Positive' outlook indicates that an upgrade of the company's credit rating is possible within the next 12 to 18 months.

Hyundai Glovis currently holds a 'Baa1/Stable' rating from Moody's. Moody's cited steady demand from affiliated customers and expected profitability improvements through conservative financial management as reasons for raising the credit rating outlook.

Moody's expects Hyundai Glovis to improve profitability by recently securing stable contract renewals with major customers in the finished vehicle maritime transport sector, increasing the proportion of long-term charters, and rationalizing fleet operations. Additionally, Moody's anticipates that the conservative financial management stance will be maintained, keeping the debt ratio low.

Moody's forecasts Hyundai Glovis's operating profit margin to improve from 6.0-6.2% in 2023-2024 to 6.3-6.5% in 2025-2026.

Moody's stated, "Hyundai Glovis will maintain high financial soundness based on solid operating performance and strict debt management," and "Despite increased expenditures due to various investments, it is expected to sustain strong operating results sufficient to offset these costs."

Meanwhile, Hyundai Glovis obtained a corporate credit rating of AA+ from Korea Ratings in December last year and received an AA0 rating from Korea Investors Service and NICE Investors Service in May of the same year, achieving the highest level of credit ratings from the three major domestic credit rating agencies.