Moody's: Hyundai, Kia unchanged

Moody's Investors Service said news by creditors that Hyundai Motor group has been appointed the preferred bidder for a 34.88% stake in Hyundai Engineering & Construction will have no impact on the group's ratings.

Three group companies jointly participated in the bidding: Hyundai Motor Co., Kia Motors Corp. and Hyundai Mobis. Moody's said it expects the acquisition to cost about KRW 5 trillion.

The agency said it sees no rating impact from the acquisition on any of the three Hyundai Motor group companies, given their strong financial profiles at their respective rating levels, said Chris Park, a Moody's analyst.

Despite the high cost and the limited potential for synergies from the engineering and construction business, the companies' strong financial profiles provide a significant cushion against any adverse impact of the acquisition, the agency said.

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