Hyundai Motor Group companies' ratings upgraded by global top rating agencies

Hyundai Motor Company (Hyundai Motor) and Kia Corporation (Kia) have achieved the significant milestone of securing upgraded ratings in 2024 from all three major global credit rating agencies: S&P Global (S&P), Moody's Investors Service (Moody's) and Fitch Ratings (Fitch).

Hyundai Motor and Kia's ratings from S&P were upgraded last week to 'A-', following Fitch Ratings' raise to 'A-' and Moody's upgrade to 'A3' for both brands in February.

These upgrades solidify both Hyundai Motor and Kia's positions as global mobility industry leaders, putting the Hyundai Motor and Kia brands on par with Mercedes-Benz, Toyota and Honda – the other major global mobility firms to receive 'A-grade' rankings from the top three global credit rating agencies.

Robust performance, flexible capabilities

According to S&P, Fitch and Moody's, both companies' ratings upgrades were driven by their robust financial performance, characterized by strong predicted double-digit profit margins and cash flow. Improved product competitiveness of the brands' diverse vehicle lineups, robust market positioning relating to electrification strategy, and a flexible production approach to meet changing global demands were also key contributing factors.

S&P outlined solid profit and cash flow following "three years of marked enhancement in profitability starting in 2021", adding, "Its solid portfolio of hybrid and BEVs should help support the company's competitive position amid the transition to electrification."

Fitch Ratings previously highlighted Hyundai Motor and Kia's improved brand strength and strong position in key markets, citing "geographical and product diversification, improved profitability and cash generation" as contributing factors to its upgrade.

Moody's Investors Service previously emphasized continued profitability and a strong balance sheet, among other factors.