S&P lowers Hyundai, Kia view to negative

S&P said it revised the outlooks to negative from stable on Hyundai Motor Co., Kia Motors Corp. and Hyundai Mobis Co. Ltd.

The agency also said it affirmed the A- long-term corporate credit ratings on the companies, along with the A- long-term issue ratings on Kia's outstanding notes.

The negative outlooks reflect a view of the companies' weakening sales and profitability, S&P said, and uncertainty over whether they will be able to reverse the trend over the next 12 months.

The agency said it believes the companies may be unable to return to their historical profitability over the next 12 months due to increased competition in the United States and China, along with geopolitical uncertainties related to the China operations, weaker product mix and continued conflicts with labor unions in Korea.

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