S&P Removes Hyundai Motor Credit Rating from Negative Watch, Maintains BBB+

Credit Rating Outlook Maintains 'Negative' Status

[Asia Economy Reporter Minji Lee] International credit rating agency S&P announced on the 15th that it has maintained the credit ratings of Hyundai Motor Group affiliates at 'BBB+' and excluded them from the negative watch list. The rating outlook remains 'negative.'

S&P stated, "Hyundai Motor Group's finished car division is expected to record relatively stable operating performance this year, supported by solid domestic sales, improved product mix, and efficient cost reduction."

[Image source=Yonhap News]

It added, "Although Hyundai and Kia's vehicle sales this year are expected to decrease by 15% compared to the previous year, the EBITDA margin (earnings before interest, taxes, depreciation, and amortization) is expected to maintain a level similar to last year's 5.9%, ranging between 5.0% and 6.0%. Under the base scenario, Hyundai and Kia are projected to demonstrate continuous profitability recovery from 2021 to 2022 despite uncertainties in the global automotive market," it estimated.

The rating outlook was explained to remain negative, reflecting business uncertainties due to the COVID-19 pandemic and the possibility of a domestic market slowdown.

This content was produced with the assistance of AI translation services.