However, attention is also being focused on the return of the credit rating to AAA (Triple A). Under current credit ratings, ``AAA'' means the highest rank for a private company.
According to the financial investment industry, on the 15th, NICE Credit Ratings maintained Hyundai Motor's long-term credit rating at AA+ and changed the rating outlook from the previous "stable" rating.
The rating was raised to "positive." This is because, despite concerns about peaking out, the sales performance of completed vehicles has maintained an excellent level, and the company's financial stability is high, including abundant cash liquidity.
Hyundai Motor's consolidated sales for the third quarter of this year were 41.027 trillion won (approximately 4.48 trillion yen) and operating profit was 3.8218 trillion won (approximately 4.18 trillion yen).
Ta. This was the largest third-quarter performance ever and exceeded the full-year results for 2022. In 2021, Hyundai Motor will launch E-G, a modular electric vehicle platform from the University of Technology.
MP has been well received in the market and has recently been increasing its sales share in the automobile markets of the United States and Europe. Hyundai Motor Group's sales share in the US will increase from 7.2% in 2017 to the end of September 2023
Its sales share in Europe increased from 5.3% to 7.1% during the same period. Hong Se-jin, a researcher at NICE Credit Evaluation, said, ``In this process, we have gained strength in internal combustion engines and
Volkswagen, GM, and Nissan Renault, which used to be highly dependent on the domestic market, have seen their sales share decline over the past few years as China's automobile industry shifts to a market centered on domestic electric vehicle brands.
There is a tendency to do so.” Operating profitability has also improved significantly due to improved sales capabilities due to increased product competitiveness. On a cumulative basis as of the end of September, Hyundai Motor's operating profit margin was 10.1%.
This is higher than Volkswagen's 6.8%, GM's 7.1%, and Nissan Renault's 6.5%. Financial stability is also excellent. On a consolidated basis at the end of September, Hyundai Motor's debt ratio was 65
.4%, cash assets are 20.4 trillion won (approximately 2.23 trillion yen), and loans are at the level of 6.2 trillion won (approximately 678 billion yen). Researcher Hong said, ``Research and development funds are accumulating and we are currently in the mid-term
``Although the company's investment is higher than in previous years, it is expected to maintain excellent financial stability in that it holds cash assets that far exceed its borrowings.''
At a seminar entitled "War and the Weight of Debt" jointly sponsored by NICE Credit Ratings and Standard & Poor's (S&P) on the 6th, Hyundai Motor
There was an opinion that it is possible to consider raising the rating. Choi Woo-seok, managing director of NICE Credit Rating, said, ``Hyundai Motors has an excellent track record this year and has strengthened its finances.''
In order to obtain an A rating, we need to consider whether we can respond to the transformation strategy to electric vehicles, whether we can expect good performance next year, and what kind of results we need to see in the competition with Japanese companies in the North American market.
We have to keep an eye on variable factors, such as whether it will be possible to do so." Prior to this, Hyundai Motor was upgraded from AAA to AA+ by three domestic credit rating agencies in 2019.
Its ratings were revised downward all at once, and six years after it was awarded AAA in 2013, it lost its nickname of ``Korea's highest credit grade company.'' At that time, there was a prolonged slump in the Chinese market, which was a major export departure.
This was cited as the reason for the decline in credit rating. Currently, there are only three domestic Korean companies with credit ratings of AAA, excluding public enterprises and financial institutions: SKT, KT, and KT&G. mosquito
This is because the company's credibility reflects the fact that it is a public company that has inherited the nation's core industries and receives support from the government. In addition, the possibility of Hyundai Motor's credit rating being raised increases, and Hyundai Motor
There is also an increased possibility that the credibility of affiliated companies within the group will increase in a chain reaction. This is because all affiliated companies are highly dependent on Hyundai Motor.
2023/12/17 07:01 KST
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