Hyundai Motor announced on Tuesday, April 2nd, that it received an ‘AAA’ rating from NICE Credit Rating, a leading domestic credit rating agency. This marks a significant upgrade from its previous AA+ rating obtained in April 2020, after four years. The credit outlook remains ‘Stable.’
The AAA rating is the highest level in NICE’s credit rating system, indicating the best overall debt repayment capability.
NICE Credit Rating stated, “Hyundai Motor has secured excellent product competitiveness across internal combustion engines, electric vehicles, and hybrids, while flexibly responding to changes in demand and achieving outstanding sales results in major advanced markets such as the United States and Europe.”
It also explained, “With improved product competitiveness, the revenue share from major markets has expanded, and the sales mix centered on high-value models, including SUVs, has led to a significant improvement in operating profitability compared to other global automakers.”
NICE further projected that “Hyundai will maintain excellent financial stability due to its abundant cash liquidity and stable profit generation capabilities, providing it with financial buffering capability.”
This year, global credit rating agencies have continued to evaluate Hyundai positively.
In February, Moody’s upgraded Hyundai’s credit rating from Baa1 to A3, and Fitch also raised it from BBB+ to A-.
Earlier in January, Standard & Poor’s (S&P) revised Hyundai’s credit rating outlook from ‘Stable’ to ‘Positive.’
A representative from Hyundai stated, “With the recent upgrades from both global and domestic leading credit rating agencies, we have once again confirmed that we are receiving positive evaluations. We will continue to strengthen our financial health and profitability to maintain a stable management environment.”
Lee Sang-jin daedusj@autodiary.kr