Fitch raises Hyundai, Kia

Fitch Ratings said it upgraded Hyundai Motor Co.'s and Kia Corp.'s long-term issuer default and senior unsecured ratings to A- from BBB+.

“The upgrades reflect continued improvement in HMC's and Kia's combined brand strength and market position in key markets. The ratings also take into consideration the combined large-scale, geographical and product diversification and also reflect improved profitability and cash generation, and large liquidity buffers,” Fitch said in a press release.

The agency said it expects the two companies’ profitability and cash flow to slow in 2024, mirroring decreased market growth, greater price competition and a stronger Korean won. “Even so, Fitch expects the companies to sustain margins and market position commensurate with the A category.”

The outlooks are stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.