Credit rating agency Moody’s has upgraded South Korean automotive manufacturer Hyundai Motor Company’s corporate rating to A3 with a stable outlook, from a previous rating of Baa1, with a positive outlook.
As per the report from Moody’s, the rating upgrade reflects Hyundai Motor’s continued profitability and balance sheet improvements, underpinned by the company’s strengthened product competitiveness and strong free cash flow generation.
Moody’s also cited that Hyundai Motor’s profitability will remain robust and the company’s substantial financial buffer will stay largely intact over the next one to two years, notwithstanding the increasing difficulties in the global automotive industry.
“This credit rating upgrade is significant and acknowledges our stable financial foundations amid challenging global economic conditions,” Seung Jo Lee, Senior VP, CFO and Head of Planning and Finance Division, Hyundai Motor Company, said.
Moody’s also mentioned that the A3 rating reflects Hyundai Motor’s strong position in the Korean automotive market, competitiveness in key overseas markets, high degree of geographic diversification, very low financial leverage, and strong balance sheet.
Recent media reports noted that Hyundai Motor was looking to list its India unit in what was touted to be India’s largest IPO, but the company has clarified in a regulatory filing that “nothing has been decided.”