Hyundai Motor Group Companies' Ratings Upgraded by Global Top Rating Agencies

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Hyundai Motor and Kia have achieved a significant milestone in 2024, receiving upgraded ratings from all three major global credit rating agencies: S&P Global, Moody's Investors Service, and Fitch Ratings. Both companies' ratings were raised to 'A-' by S&P and Fitch, and 'A3' by Moody's, putting them on par with industry leaders like Mercedes-Benz, Toyota, and Honda.

The upgrades were driven by robust financial performance, with strong predicted double-digit profit margins and cash flow. Other contributing factors include improved product competitiveness, strong market positioning in electrification, and flexible production capabilities. This achievement solidifies Hyundai Motor and Kia's positions as global mobility industry leaders, reflecting their continued growth and strategic advancements in the automotive sector.

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• Hyundai Motor and Kia receive series of rating raises in 2024 from major global credit ratings agencies
• Upgrade for Hyundai and Kia follows strong financial performance and improved competitiveness of diverse product lineup
• Latest ratings upgrade comes ahead of Hyundai Motor CEO Investor Day on Wednesday 28^th August, set to outline future strategy and financials

SEOUL, South Korea, Aug. 26, 2024 /PRNewswire/ -- Hyundai Motor Company (Hyundai Motor) and Kia Corporation (Kia) have achieved the significant milestone of securing upgraded ratings in 2024 from all three major global credit rating agencies: S&P Global (S&P), Moody's Investors Service (Moody's) and Fitch Ratings (Fitch).

Hyundai Motor and Kia's ratings from S&P were upgraded last week to 'A-', following Fitch Ratings' raise to 'A-' and Moody's upgrade to 'A3' for both brands in February.

These upgrades solidify both Hyundai Motor and Kia's positions as global mobility industry leaders, putting the Hyundai Motor and Kia brands on par with Mercedes-Benz, Toyota and Honda – the other major global mobility firms to receive 'A-grade' rankings from the top three global credit rating agencies.

	Hyundai		Kia
	Aug '24		Aug '24
		Previous Rating		Previous Rating
S&P Global	A- (Stable)		A- (Stable)
		BBB+ (Positive)		BBB+ (Positive)
Moody's Investor Service	A3 (Stable)		A3 (Stable)
		Baa1 (Positive)		Baa1 (Positive)
Fitch Ratings	A- (Stable)		A- (Stable)
		BBB+ (Positive)		BBB+ (Positive)

Robust performance, flexible capabilities

According to S&P, Fitch and Moody's, both companies' ratings upgrades were driven by their robust financial performance, characterized by strong predicted double-digit profit margins and cash flow. Improved product competitiveness of the brands' diverse vehicle lineups, robust market positioning relating to electrification strategy, and a flexible production approach to meet changing global demands were also key contributing factors.

S&P outlined solid profit and cash flow following "three years of marked enhancement in profitability starting in 2021", adding, "Its solid portfolio of hybrid and BEVs should help support the company's competitive position amid the transition to electrification."

Fitch Ratings previously highlighted Hyundai Motor and Kia's improved brand strength and strong position in key markets, citing "geographical and product diversification, improved profitability and cash generation" as contributing factors to its upgrade.

Moody's Investors Service previously emphasized continued profitability and a strong balance sheet, among other factors.

More information about Hyundai Motor Group can be found at:
http://www.hyundaimotorgroup.com or Hyundai Media_Hubhttps://www.hyundai.com/worldwide/en/newsroom, Kia Global Media Center, Genesis Newsroom

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SOURCE Hyundai Motor Group

FAQ

What ratings did Hyundai Motor and Kia receive from global credit rating agencies in 2024?

In 2024, Hyundai Motor (HYMTF) and Kia received upgraded ratings from S&P Global and Fitch Ratings to 'A-', and from Moody's Investors Service to 'A3'.

How do Hyundai and Kia's new credit ratings compare to other automotive companies?

The new 'A-grade' ratings put Hyundai Motor (HYMTF) and Kia on par with other major global mobility firms like Mercedes-Benz, Toyota, and Honda.

What factors contributed to the credit rating upgrades for Hyundai and Kia in 2024?

The upgrades were driven by robust financial performance, strong predicted profit margins, improved product competitiveness, strong market positioning in electrification, and flexible production capabilities.

When did S&P Global upgrade Hyundai Motor and Kia's ratings to 'A-'?

S&P Global upgraded Hyundai Motor (HYMTF) and Kia's ratings to 'A-' in the last week of August 2024, as mentioned in the press release dated August 26, 2024.

What did S&P Global say about Hyundai's electrification strategy in their 2024 rating upgrade?

S&P Global stated that Hyundai's (HYMTF) solid portfolio of hybrid and BEVs should help support the company's competitive position amid the transition to electrification.