Moody’s upgrades Hyundai, Kia

Moody's Investors Service said it upgraded to A3 from Baa1 the issuer ratings of Hyundai Motor Co., Kia Corp. and Hyundai Mobis Co., Ltd., and the senior unsecured rating of Kia.

The agency also upgraded to A3 from Baa1 the backed senior unsecured ratings of PT Hyundai Motor Manufacturing Indonesia and Hyundai Assan Otomotiv Sanayi ve Ticaret AS, reflecting the guarantee from their parent, Hyundai Motor.

Finally, Moody's changed all outlooks to stable from positive.

"The rating upgrades primarily reflect Hyundai Motor's and Kia's continued profitability and balance sheet improvements, underpinned by their strengthened product competitiveness and strong free cash flow generation," said Wan Hee Yoo, a Moody's vice president and senior credit officer, in a press release.

"The stable outlook reflects our expectation that Hyundai Motor's and Kia's profitability will remain robust and their substantial financial buffer will stay largely intact over the next one to two years, notwithstanding the increasing difficulties in the global automotive industry," Yoo added.

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