Moody's rates Hyundai Mobis Baa3

Moody's Investors Service said it assigned a Baa3 issuer rating to Hyundai Mobis Co.

The outlook is stable.

The agency said Hyundai Mobis' rating reflects its strong competitive position in the South Korean auto parts market, strong revenue growth profile due to captive demand from Hyundai Motor Corp. and Kia Motor Corp., low-cost structure compared with its global peers, moderate size on a global scale, competitive position, resilient profitability supported by its unique business structure, solid financial policy and low leverage.

These strengths, however, are tempered by Hyundai Mobis' weaker business diversification in terms of its major business lines and customers, its historically negative free cash flow position and its low research and development expenditure in relation to sales, Moody's said.

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