Moody's may cut Hyundai Mobis

Moody's Investors Service said it placed on review for downgrade Hyundai Mobis Co.'s Baa3 long-term issuer rating. This follows Moody's downgrade review of Hyundai Motor Co.

The action reflects the close ratings linkage between Hyundai Mobis and Hyundai Motor given its high dependence on Hyundai Motor for revenue and operational support, Moody's said.

Any material change in Hyundai Motor's credit strengths will significantly affect Hyundai Mobis' business risks and financial profile, the agency said.

Hyundai Mobis' key credit ratios are likely to remain strong for its Baa3 rating, reflecting its stable aftermarket businesses and traditionally healthy financial profile, the agency said. But Hyundai Mobis' rating continues to be constrained by Hyundai Motor's rating, Moody's added.

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