S&P: Hyundai Capital, Hyundai Card view negative

Standard & Poor's said it revised the outlook on the long-term credit ratings on Hyundai Capital Services Inc. and Hyundai Card Co. Ltd. to negative from stable.

The agency affirmed the BBB/A-2 ratings on Hyundai Capital and the BBB rating on Hyundai Card.

The outlook revisions follow the outlook revision to negative from stable on parent Hyundai Motor Co. (BBB-/negative), the agency said.

The revision to the outlook on General Electric Capital Corp. (AAA/negative/A-1+) is another contributing factor.

S&P said the outlook revisions reflect its view that a decline in Hyundai Motor's business and a downturn in the auto industry could hurt related businesses.

The long-term issuer credit ratings remain one notch higher than that on Hyundai Motor, reflecting GE Capital's veto rights and support, though its capacity to support has diminished somewhat, the agency noted.

Ratings on Hyundai Capital reflect the company's position as the key captive financing arm, its good asset quality and the company's high dependency on market-sensitive funding sources, S&P said.

Ratings on Hyundai Card reflect the company's very strong capitalization, its good business relationship with Hyundai Motor, as well as its high dependency on market-sensitive funding sources and relatively weak market position, the agency said.

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