Hyundai Capital, Moody's Credit Rating Upgraded for the First Time in 12 Years... 'Baa1' → 'A3'

Hyundai Capital received a credit rating upgrade from the global credit rating agency Moody's for the first time in 12 years.

Hyundai Capital announced on the 7th that Moody's raised its credit rating from Baa1 (positive) to A3 (stable). This upgrade comes one year after Moody's upgraded Hyundai Capital's credit rating outlook earlier last year, marking the first rating upgrade in about 12 years.

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In February last year, Moody's adjusted Hyundai Capital's credit rating outlook from 'stable' to 'positive,' signaling a potential rating upgrade. Following consecutive AA+ ratings from the three major domestic credit rating agencies earlier last year, Hyundai Capital has now achieved an upgrade from Moody's as well. In October last year, Hyundai Capital successfully issued asset-backed securities (ABS) worth 1 trillion KRW, and on the 30th of last month, it issued overseas bonds worth 1 billion USD, demonstrating its strong financing capabilities. Moody's explained that the credit rating evaluation reflected Hyundai Capital's solid asset portfolio centered on captive (company-operated) auto finance business, excellent asset soundness, and stable capital adequacy.

Hyundai Capital is a captive finance company providing financial services optimized for Hyundai Motor Group's automotive products. Hyundai Motor (59.7%) and Kia (40.1%) hold a combined 99.8% stake in the company.

Lee Hyung-seok, Chief Financial Officer (CFO) of Hyundai Capital, stated, "This credit rating upgrade is the result of Hyundai Capital's role shining through as a captive finance company despite unstable market conditions such as high interest rates and real estate project financing (PF). We expect our financing competitiveness to further improve, supported by strengthened domestic and international investor sentiment going forward."

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