Moody’s: Kia Motors unaffected

Moody's Investors Service said that Kia Motors Corp.’s planned acquisition of a 20.1% stake in Hyundai Capital Services, Inc. (HCS; Baa1 stable) will not have an impact on the company's Baa1 issuer rating, senior unsecured debt rating or stable outlook.

"The transaction will not have a meaningful impact on Kia's credit profile, given the small size of the transaction relative to Kia's asset base, Kia's strong balance sheet, as well as HCS' strong domestic franchise," Moody's vice president and senior analyst Wan Hee Yoo said in a news release.

According to the public filing, Kia plans to acquire a 20.1% stake in Hyundai Capital from General Electric Capital Corp. (A1) for KRW 607 billion. In addition, its parent, Hyundai Motor Co. (Baa1 stable) also announced that it will acquire a 3.2% stake in Hyundai Capital from General Electric for KRW 96 billion.

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