Hyundai Glovis Earns Moody's 'A3' Credit Rating... "Profitability Improved"

Upgraded from Baa1 by One Notch
Reaching the Threshold of an A Rating for the First Time

Hyundai Glovis has demonstrated its global capabilities by receiving an A rating for the first time in an international corporate credit evaluation.

On February 2, Hyundai Glovis announced that Moody's, the international credit rating agency, has upgraded its corporate credit rating from 'Baa1' to 'A3'.

A3 is the seventh highest out of Moody's 21 rating categories, indicating a strong credit status with significantly reduced credit risk. The credit outlook is 'stable'.

Moody's explained, "This rating upgrade reflects Hyundai Glovis's continued improvement in profitability and maintenance of low debt leverage under conservative financial management."

According to Moody's, Hyundai Glovis's operating profit margin rose from 6.2% in 2024 to 7.0% last year. Moody's expects this ratio to be maintained over the next 12 to 18 months.

Moody's also evaluated that the strong performance was particularly driven by the car carrier shipping (PCTC) segment within the shipping business. The agency analyzed that robust demand from automakers, changes in fleet composition centered on long-term charters, increased sales from non-affiliated clients, and higher freight rates from affiliated clients all supported the improved results.

In addition, the adjusted debt-to-EBITDA ratio improved from 1.8 times in 2024 to 1.4 times last year, and the company’s holding of approximately 500 billion won in net cash was cited as a reason for the credit rating upgrade. Business stability due to volumes from affiliated companies was also taken into account.

Last year, Hyundai Glovis posted record-high results, with sales of 29.5664 trillion won and operating profit of 2.073 trillion won. This year, the company plans to further prove its global business competitiveness by pursuing an active business expansion strategy based on its solid performance and excellent credit rating.

A Hyundai Glovis official stated, "This year, we will continue to promote stable business operations through growth via asset expansion and a strategy to increase non-affiliated clients," adding, "Based on our mid- to long-term business strategy, we will achieve sustainable growth and strengthen our financial soundness to satisfy shareholders and stakeholders."