Fitch rates Kia Motors BBB-

Fitch Ratings said it assigned Kia Motors Corp. a long-term foreign-currency issuer default rating of BBB-, a short-term rating of F3 and a senior unsecured debt rating of BBB-.

The outlook is stable.

The ratings reflect Kia's position as the second-largest automobile manufacturer in South Korea, its leading domestic market position in the recreational vehicle (RV) segment, generally growing overseas presence and the likely support from Hyundai Motor Co. (BBB- with stable outlook), the parent company, in case of financial difficulties, Fitch said.

Credit concerns include the company's heavy exposure to the foreign-exchange risks arising from its high export ratio, although the agency said it expects these risks to reduce in line with Kia's increasing overseas production. As a key member company of a business conglomerate with a complex crossholding ownership structure, KIA also is exposed to possible contagion risk, Fitch said, along with a labor dispute that has repeatedly troubled KIA.

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