Fitch: Limited impact on Hyundai Motor, Kia Motors

Fitch Ratings commented that HMC Group's acquisition of a controlling stake in Hyundai Engineering & Construction will have limited impact on Hyundai Motor Co.'s and Kia Motors Corp.'s credit profiles.

HMC's credit profile is expected to remain well within expectations for the current rating level, despite expectations of limited synergy between Hyundai Engineering's construction business and HMC's core automobile business, Fitch said, and despite net debt levels at HMC's consolidated level likely to increase with this transaction.

HMC and its affiliate Kia continue to show robust growth in sales, the agency said, as well as market share gains in major markets.

Fitch noted that both companies are benefitting from the recovery in the global auto market, driven by a modest recovery in the United States market and from continued strength in emerging markets like China and India.

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