Hyundai Motor Receives a Credit Rating Upgrade as 'A-' from S&P Global
Rhea-AI Summary
Hyundai Motor Company (HYMTF) has received a credit rating upgrade from S&P Global, moving from 'BBB+' to 'A-' with a 'Stable' outlook. This achievement marks Hyundai's attainment of an 'A' rating from all three major global credit agencies in 2024, following upgrades from Moody's and Fitch earlier in the year. The upgrade reflects Hyundai's strong market position, solid profitability, and robust cash flow.
S&P Global cited Hyundai's improved market share, enhanced product mix, and favorable exchange rates as key factors contributing to the company's marked profitability improvement since 2021. The agency also highlighted Hyundai's balanced portfolio of EV and hybrid models as a strength for adapting to market changes during the electrification transition.
Positive
- Credit rating upgraded from 'BBB+' to 'A-' by S&P Global
- Achieved 'A' rating from all three major global credit agencies in 2024
- Improved market share and product mix leading to enhanced profitability
- Balanced portfolio of EV and hybrid models positioned well for electrification transition
- Robust profitability expected to continue over the next 12-24 months
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, HYMTF declined 1.92%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Hyundai Motor's S&P Global credit rating upgraded from 'BBB+' to 'A-', achieving an 'A' rating from the world's top three credit agencies this year
- High worldwide evaluations reflect Hyundai Motor's product and brand competitiveness, profitability, financial soundness and global market position
With this rating upgrade, Hyundai Motor has received an 'A' credit rating from all three of the world's major credit rating agencies this year, following 'A3' and 'A-' upgrades from Moody's Investors Service and Fitch Ratings respectively in February. These high worldwide evaluations reflect the company's product and brand competitiveness, profitability, financial soundness and global market position.
S&P Global divides ratings into 22 levels from AAA to D to evaluate the credit of a country or company. The 'A-' rating, the seventh highest credit rating, means that the credit status is good, and the credit risk is significantly low.
S&P Global based the upgrade on Hyundai Motor's stronger market position, which has led to solid profit and cash flow. This follows three years of marked enhancement in profitability starting in 2021. This stems from market share gains, product mix improvements, and some exchange rate tailwinds.
Also, they forecasted that the company's balanced portfolio, including both EV and hybrid models, will enable it to adapt to market changes during the electrification transition. The 'Stable' outlook reflects the expectation that Hyundai Motor will maintain robust profitability over the next 12-24 months.
Only six major global automotive companies, including Hyundai Motor and Kia Corporation, along with Toyota, BMW, Mercedes-Benz, etc., have achieved an A rating in S&P Global's credit rating evaluation.
Hyundai Motor plans to continue efforts to maintain financial soundness and strengthen global competitiveness by responding flexibly to market changes.
More information about Hyundai Motor and its products can be found at:
https://www.hyundai.com/worldwide/en/ or Newsroom: Media Hub by Hyundai
View original content:https://www.prnewswire.com/news-releases/hyundai-motor-receives-a-credit-rating-upgrade-as-a--from-sp-global-302227440.html
SOURCE Hyundai Motor Company
FAQ
What is Hyundai Motor's new credit rating from S&P Global for HYMTF stock?
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