NICE Investors Service Upgrades Hyundai Rotem's Long- and Short-Term Credit Ratings

On April 17, NICE Investors Service announced that it has upgraded Hyundai Rotem's long- and short-term credit ratings to 'AA-/Stable' and 'A1', respectively.

NICE Investors Service explained that the upgrade reflects Hyundai Rotem's improved operating performance, which has expanded based on K2 tank exports to Poland, and that the company is expected to achieve excellent operating results over the medium term based on the second export contract.

Additionally, another reason for the upgrade is the expectation that Hyundai Rotem will maintain strong financial stability, as its enhanced internal cash generation capacity is expected to adequately cover working capital and investment capital needs. The previous ratings were long-term A+/Positive and short-term A2+.

NICE Investors Service stated, "Although short-term fluctuations in operating results may occur depending on production and delivery schedules, considering that the size of the second contract exceeds 9 trillion won based on the current exchange rate and is expected to provide strong profitability, the company is projected to deliver excellent operating results over the medium term."

Furthermore, as of the end of 2025 on a consolidated basis, Hyundai Rotem's debt ratio is 206.4%. However, factoring in advance payments, the effective debt ratio is evaluated to be lower than this indicator. The net debt dependence ratio stands at -12.3%, demonstrating a net cash position, and overall financial stability indicators are also at an excellent level.

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