Hyundai Motor and Kia receive series of rating raises in 2024 from major global credit ratings agencies

Upgrade for Hyundai and Kia follows strong financial performance and improved competitiveness of diverse product lineup

Latest ratings upgrade comes ahead of Hyundai Motor CEO Investor Day on Wednesday 28th August,set to outline future strategy and financials

SEOUL,South Korea,Aug. 26,2024 -- Hyundai Motor Company (Hyundai Motor) andKia 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 Group Companies’ Ratings Upgraded by Global Top Rating Agencies

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.

Hyundai

Kia

Aug '24

Aug '24

Previous

Rating

Previous

Rating

S&P Global

A-

(Stable)

A-

(Stable)

BBB+

(Positive)

BBB+

(Positive)

Moody's Investor

Service

A3

(Stable)

A3

(Stable)

Baa1

(Positive)

Baa1

(Positive)

Fitch Ratings

A-

(Stable)

A-

(Stable)

BBB+

(Positive)

BBB+

(Positive)

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.

More information about Hyundai Motor Group can be found at:

http://www.hyundaimotorgroup.comor Hyundai Media_Hubhttps://www.hyundai.com/worldwide/en/newsroom,Kia Global Media Center,Genesis Newsroom