Moody’s, the credit rating agency, has upgraded the corporate rating of South Korean automotive manufacturer Hyundai Motor Company to A3 with a stable outlook. This represents an improvement from the previous rating of Baa1, which had a positive outlook.
According to Moody’s report, the rating upgrade reflects Hyundai Motor’s sustained profitability and enhancements to its balance sheet, supported by increased competitiveness in its product offerings and strong generation of free cash flow.
Moody’s also highlighted that Hyundai Motor’s profitability is expected to remain strong, and the company’s significant financial reserves are projected to remain largely intact over the next one to two years, despite the growing challenges in the global automotive sector.
Seung Jo Lee, Senior Vice President, CFO, and Head of Planning and Finance Division at Hyundai Motor Company, commented, “This credit rating upgrade is significant and acknowledges our stable financial foundations amid challenging global economic conditions.”
Moody’s further mentioned that the A3 rating reflects Hyundai Motor’s prominent position in the Korean automotive market, its competitiveness in key international markets, extensive geographic diversification, minimal financial leverage, and robust balance sheet.
Recent media reports speculated about Hyundai Motor’s plans to list its India unit in what was anticipated to be India’s largest IPO. However, the company clarified in a regulatory filing that “nothing has been decided.”