Fitch: Hyundai Card holds steady

Fitch Ratings said it said recent rating downgrades to key subsidiaries of the Hyundai Motor Group has not resulted in any overly significant downward pressure on the ratings of its 48.6%-owned subsidiary, Hyundai Card Co., Ltd., which has a long-term foreign-currency issuer default rating of BBB and short-term foreign-currency issuer default rating of F2. Its outlook is stable.

Hyundai Motor Co. and Kia Motors Corp.'s long-term foreign-currency issuer default ratings recently were downgraded to BB+ from BBB- with a negative outlook.

Hyundai Card's ratings reflects its good and substantial franchise, good quality and generally low-risk and mostly transactional nature of its receivables, strong underlying profitability and substantial capitalization, Fitch said.

These factors should hold the company in good stead amidst the slowing of Korea's economy, albeit with growth opportunities limited and profitability curtailed by higher funding costs and rising credit costs, the agency said.

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