Moody's Upgrades Credit Ratings of Hyundai Motor, Kia, and Hyundai Mobis to A3

Hyundai Ioniq 5N Tech Day / Photo by Yongjun Cho jun21@

Global credit rating agency Moody's has upgraded the credit ratings of Hyundai Motor, Kia, and Hyundai Mobis from Baa1 to A3. This is the first time these companies have received an A rating from Moody's.

Hyundai Motor Group announced on the 6th that Moody's has upgraded the credit ratings of Hyundai Motor, Kia, and Hyundai Mobis to A3.

Hyundai Motor, Kia, and Hyundai Mobis received a Baa1 credit rating from Moody's in October 2012. In February last year, Moody's revised the credit rating outlook for these companies from 'Stable' to 'Positive,' signaling a potential upgrade.

A3 corresponds to the 7th highest rating among Moody's 21 rating levels. Only eight automobile companies, including Hyundai Motor, Kia, Toyota, BMW, and Mercedes-Benz, have received an A rating.

Moody's expects the combined adjusted EBITA margin of Hyundai Motor and Kia for 2024?2025 to be 10?11%, similar to other automobile companies with an A credit rating.

Additionally, Moody's evaluated that Hyundai Motor and Kia will be able to offset the slowdown in sales growth and increased incentive costs based on improvements in brand and product competitiveness.

Moody's explained, "We reflected Hyundai Motor and Kia's strong position in the Korean market, competitiveness in key overseas markets, and diversified market portfolio in the rating assessment," adding, "We also considered the synergy effects from the integration of major divisions of the two companies, which led to this credit rating upgrade."

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