S&P: Hyundai view to positive, Kia notes BBB

Standard & Poor's said it revised to positive from stable the outlook on its BBB long-term corporate credit ratings on Hyundai Motor Co., Kia Motors Corp., Hyundai Mobis Co. Ltd. and Hyundai Glovis Co. Ltd.

The agency also said it affirmed its long-term corporate credit ratings on the four companies and affirmed the BBB debt rating on Hyundai Motor's two guaranteed bond issuances.

The agency also said it assigned a BBB rating to Kia Motors Corp.'s proposed issue of dollar-denominated senior unsecured bonds.

S&P said the bonds will not materially affect Kia's financial risk profile given the robust free operating cash flow that the company is expected to generate this year.

The outlook revision reflects a view that the two automakers will continue to enhance their financial profiles over the next 12 to 18 months based on strengthening global market positions and improving profitability, the agency said.

This progress is largely structural and based on fundamental enhancements that both automakers have made globally to product quality, brand, cost reductions and distribution networks, S&P added.

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