Hyundai Motor, Kia receive AAA rating from Korean credit agencies

(Hyundai Motor Group)

South Korea’s two major automakers Hyundai Motor Co. and Kia Corp. obtained the highest credit rating of AAA from the country’s three major credit rating agencies.

According to Hyundai Motor on Sunday, Korea Ratings upgraded its credit rating to AAA on Friday.

This marks the first upgrade in five years for Hyundai Motor since the agency raised its credit rating to AA+ in November 2019.

The AAA rating is the highest of the agency’s 20 ratings. The agency assessed Hyundai’s credit outlook as “stable.”

Korea Ratings noted that “Hyundai Motor has global competitiveness” and that “it has entered a ‘virtuous cycle structure’ where improved cash flow leads to expanded investment.”

Kia also received an AAA rating on Friday from NICE Investors Service Co. and Korea Ratings, following its AAA rating from Korea Investors Service Co. in September.

This is the first time in its 80-year history that Kia has received the highest credit rating from all three major Korean credit rating agencies.

Hyundai and Kia also hold high credit ratings overseas.

The world’s three major credit rating agencies - Moody’s Corp., S&P Global Ratings, and Fitch Ratings Inc. - gave Hyundai and Kia a credit rating of A this year, reflecting their solid credit standing in the global market.