S&P's Hyundai, Kia ratings unaffected

Standard & Poor's said its ratings on Hyundai Motor Co. (BBB-/stable) and Kia Motors Corp. (BBB-/stable) are unlikely to be threatened by Korean prosecutors' request for an arrest warrant for Hyundai group chairman Chung Mong Koo. According to media reports, Korean prosecutors are seeking Chung's arrest for alleged embezzlement.

In addition, the agency said it believes the announcement by Hyundai that it will delay the release of its first-quarter earnings is a consequence of the confusion surrounding the Hyundai chairman and not the result of a misstatement of accounts. The first quarter financial results are expected to be announced before the regulatory deadline of May 15.

In S&P's view, the fundamental creditworthiness of Hyundai and Kia has not been impacted by the current events.

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