S&P upgrades Hyundai Card

S&P said it raised the long-term issuer credit rating on Hyundai Card Co. Ltd. to BBB+ from BBB.

The outlook is negative.

The agency also said it revised the outlook on Hyundai Capital Services Inc. to negative from stable.

S&P said it affirmed the company's A- long-term and A-2 short-term issuer credit ratings.

The upgrades reflect an opinion that the company has capacity to sustain a strong capital buffer against a spike in credit losses in the next 18 to 24 months, the agency said.

This view is based on the company's ongoing controlled growth appetite and focus on managing asset quality, S&P said.

The company has strengthened its track record in improving its asset quality and credit costs while maintaining broadly stable profitability and capitalization in recent years, the agency said.

This is despite a challenging operating environment characterized by stiff competition, regulatory pressure on decreasing merchant commission rates and high household indebtedness in Korea, S&P said.

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