Hyundai Motor regains ”highest credit rating” for the first time in four years - South Korean media

Last week, Hyundai Motor rose to the highest rank of AAA in the credit market. The AAA rank is the highest of the 10 ranks given by credit rating companies.
Since being downgraded to an "A" in Korea's credit rating for the first time in December last year, Samyang Foods' rating has dropped to "A" from all three domestic credit rating agencies.
NICE Credit Ratings has raised Hyundai Motor's long-term credit rating from AA+ (positive) to AAA (stable).
This is the first rating change in four years since receiving an AA+ rating. Hyundai Motor Group has secured the competitiveness of its products in the eco-car sector, including electric and hybrid vehicles, and is gaining recognition in major developed markets.
The company has been recording excellent sales results. Hyundai Motor Group's global sales share has remained stable, rising from fifth place until 2020 to third place since 2021.
Hong Se-jin, a researcher at NICE Credit Rating, said, "In the short to medium term, the penetration rate of electric vehicles will be determined by national policies, oil prices, and the speed of technological development, and demand will fluctuate.
"In such a market environment, automakers that have secured product competitiveness through a variety of powertrains will be able to respond flexibly to changes in the market," he said.
Hyundai Motor is expected to continue to maintain its excellent financial stability. On a consolidated basis at the end of last year, Hyundai Motor's debt ratio was 61.6%, with net debt of 1.2%.
The deposit is at a minus 16 trillion won (about 1.8 trillion yen). Researcher Hong said, "Hyundai Motor Group's investment funds for equipment investment and research and development expenses are expected to be the highest in the past few years.
However, the company predicts that "when taking into account the company's cash assets, which far exceed its borrowings, and abundant cash flows, the company will be able to maintain an excellent level of financial stability."
NICE Credit Rating also revised the outlook for Kia Motors' credit rating from stable to positive. Kia Motors also has a debt ratio of 73.2% and a net borrowing deficit of 1.2%.
The company's financial stability is said to be excellent, with a net sales of 16 trillion won. The distribution and food service industries are showing a clear and clear picture. The Korea Corporate Assessment has given Lotte Hi-Mart a rating of AA- (negative).
The rating was downgraded from "A (stable)" to "A+ (stable)" because, although the company's business stability is excellent, with the company maintaining its market position in the home appliance retail industry, the possibility of a recovery in sales performance in the short to mid-to-short term is limited.
Meanwhile, Korea Business Review and NICE Credit Rating have upgraded Samyang Foods' "A" credit rating to "positive," as the company's business performance continues to improve thanks to the growth of its overseas business.
"The growing popularity of K-food, diversification of products, and expansion of overseas business performance have led to high growth in overseas sales, and the company is expected to improve its performance," said Jang Mi-soo, a senior researcher at the Korea Business Evaluation Center.
"Overseas sales are expected to continue growing through diversifying domestic and overseas distribution networks, strengthening global sales and marketing, and additional capital investment," the company said.
In particular, it is expected that global sales and marketing will begin in earnest this year, and exports are expected to expand. Researcher Chang said, "The Miryang plant's average operating rate is expected to improve in 2023.
"Taking into account the current economic trends, we will be able to respond to growing demand overseas," he said, adding, "We expect to maintain excellent profitability thanks to strengthened sales promotion both at home and abroad, as well as falling raw material prices."
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