Moody’s applies Baa1 to Kia notes

Moody's Investors Service said it assigned a Baa1 rating to the proposed senior unsecured dollar-denominated notes to be issued by Kia Motors Corp.

The outlook is stable.

Kia plans to use the proceeds mainly for general corporate purposes.

"The Baa1 rating mainly reflects Kia's underlying credit strength and a one-notch uplift based on the expected support that its parent, Hyundai Motor Co. (HMC, Baa1 stable), is likely to provide in a distressed scenario," Moody's vice president and senior analyst Wan Hee Yoo said in a news release.

"Kia's underlying credit strength benefits from considerable synergies with HMC, its own solid position in the Korean automotive market, its high level of geographic diversity, and its strong balance sheet."

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