Pitch, Hyundai Card & Commercial Credit Rating Upgrade... 'BBB' → 'BBB+'

Hyundai Card and Hyundai Commercial announced on the 6th that the global credit rating agency Fitch has upgraded their credit ratings from BBB (Positive) to BBB+ (Stable). Both companies achieved the credit rating upgrade due to their roles as key financial firms within the Hyundai Motor Group.

Fitch focused on the business linkage between Hyundai Card and Hyundai Motor Group. It analyzed that Hyundai Card has a large usage share when purchasing Hyundai and Kia vehicles domestically and is cooperating in creating new business opportunities such as ICP (In Car Payment).

Fitch stated, “The proportion of Hyundai Card’s prime customers is continuously increasing,” and positively evaluated asset soundness. According to Korea Credit Bureau (KCB) data from January, the proportion of Hyundai Card’s prime customers rated in the top 1 to 4 grades was 86%, up 2 percentage points over two years.

The credit rating of Hyundai Commercial, the exclusive financial company for Hyundai Motor Group’s commercial vehicles, also rose. Fitch commented on Hyundai Commercial, “It is not only stably performing the role of handling domestic commercial vehicle sales for Hyundai and Kia but is also expanding its scope by contributing to automotive parts suppliers within the group’s value chain and construction projects.”

Additionally, Hyundai Commercial’s proactive risk management received high praise. Fitch explained, “Despite market crises such as interest rate hikes, economic slowdown, and real estate market stagnation, Hyundai Commercial has implemented strong risk management for years, resulting in low soundness risk.”

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Earlier, Hyundai Card obtained an A+ (Positive) rating from the Japanese credit rating agency JCR in November last year, which is the same credit rating level as Hyundai Motor, and received BBB (Positive) from the global credit rating agency Standard & Poor’s (S&P) in January. Hyundai Commercial consecutively received AA- (Stable) ratings from the three major domestic credit rating agencies and acquired Baa1 (Stable) from the global credit rating agency Moody’s last month.

A Hyundai Card official said, “Since last year, global credit rating agencies have been consecutively raising Hyundai Card’s credit rating,” adding, “Through diversification of funding sources following this, we aim to enhance financial stability while increasing collaboration opportunities with various global partners.”

A Hyundai Commercial official stated, “We have once again confirmed that Hyundai Commercial’s solid captive financial business and asset soundness are highly evaluated in the overseas credit rating market,” and added, “Even amid global crises, Hyundai Commercial will be able to gain investors’ trust.”

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