Moody's ups Kia Motors

Moody's Investors Service said it upgraded Kia Motors Corp.'s issuer rating to Baa2 from Baa3. This concludes the review for possible upgrade initiated on May 26.

The outlook is stable.

A significant and rapid improvement in Kia's financial profile, underpinned by its improved product line-up and brand equity, has resulted in the upgrade of its standalone rating to Ba1 from Ba2, the agency added.

The uplift reflects Hyundai Motor's (Baa2/stable) strong financial capability and willingness to render assistance to Kia in view of their highly integrated operations and Kia's strategic importance to the group, the agency added.

Given its strong product launch strategy, improved brand equity and product quality, as well as a balanced geographical portfolio that includes a significant exposure to the fast-growing emerging markets, market share growth is expected to continue over the short to medium term, although the pace will slow due to its profit-oriented strategy, Moody's said.

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