Hyundai Motor receives credit rating upgrade as ‘A-‘ from S&P Global

Hyundai Motor announced that the global credit rating agency S&P Global has upgraded the credit rating from ‘BBB+’ to ‘A-’. S&P Global presented a ‘Stable’ credit rating outlook for the company.

With this rating upgrade, Hyundai Motor has received an ‘A’ credit rating from all three of the world’s major credit rating agencies this year, following ‘A3’ and ‘A-’ upgrades from Moody’s Investors Service and Fitch Ratings respectively in February.

S&P Global divides ratings into 22 levels from AAA to D to evaluate the credit of a country or company. The ‘A-’ rating, the seventh highest credit rating, means that the credit status is good, and the credit risk is significantly low.

S&P Global based the upgrade on Hyundai Motor’s stronger market position, which has led to solid profit and cash flow. This follows three years of marked enhancement in profitability starting in 2021. This stems from market share gains, product mix improvements, and some exchange rate tailwinds.

Also, they forecasted that the company’s balanced portfolio, including both EV and hybrid models, will enable it to adapt to market changes during the electrification transition. The ‘Stable’ outlook reflects the expectation that Hyundai Motor will maintain robust profitability over the next 12-24 months.

Only six major global automotive companies, including Hyundai Motor and Kia Corporation, along with Toyota, BMW, Mercedes-Benz, etc., have achieved an A rating in S&P Global’s credit rating evaluation.