Moody's rates Kia notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Kia Motors Corp.'s proposed senior unsecured dollar-denominated notes.

The agency also said it affirmed its Baa2 issuer rating.

The outlook is stable.

The proceeds will be used for general corporate purpose.

The ratings reflect Kia's Ba1 standalone rating and a two-notch rating uplift from the support that its parent, Hyundai Motor Co., is likely to provide in a distressed scenario, Moody's said.

The ratings also benefit from its solid position in the Korean automotive market, high geographical diversity and its expected sustenance of robust market share performance based on improved product quality, design and brand equity, the agency said.

The rating also factors in the considerable synergies with Hyundai Motor, its robust profitability and financial metrics since 2010, Moody's said, and adequate liquidity.

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