Moody’s eyes automakers for trim

Moody’s Investors Service said it placed the ratings of five automakers in Korea and China on review for downgrade.

The five companies are Hyundai Motor Co., Kia Motors Corp., Dongfeng Motor Group Co. Ltd., Beijing Automotive Group Co., Ltd. and Geely Automobile Holdings Ltd.

Moody’s also placed on review for downgrade the ratings on the bonds issued by Dongfeng Motor (Hong Kong) International Co., Ltd. and BAIC Inalfa HK Investment Co., Ltd., which are guaranteed by Dongfeng Motor Group and Beijing Automotive Group Co., Ltd., respectively.

The spread of the coronavirus, deteriorating global economic outlook, falling oil prices and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets, Moody’s said.

Automakers have been significantly affected by the shock given its sensitivity to consumer demand and sentiment, the agency said.

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