S&P removes Hyundai from watch

S&P said it affirmed the ratings for Hyundai Motor Co., Hyundai Capital Services Inc. and Kia Motors Corp. and removed them from CreditWatch with negative implications. The agency placed the ratings on watch on April 2.

S&P also affirmed the ratings of Hyundai Glovis Co. Ltd., Hyundai Mobis Co. Ltd. and Hyundai Steel Co. Ltd.

“We affirmed the ratings on HMC and Kia Motors Corp. based on our view that the auto business' performance will be relatively resilient in 2020. We expect the group's sales volume to decline by about 15% in 2020, compared with a global decline of about 20% for auto demand in 2020,” S&P said in a press release.

The outlook is negative. “The negative outlook reflects persistent uncertainty on a full recovery from Covid-19 disruptions and the group's ability to sustain steady profitability in this difficult industry environment,” S&P said.

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