Moody Ups Grading on Hyundai and Kia Motor Companies
Hyundai Motor and affiliate Kia Motors has announced that Moody's Investors Service has revised upwards the auto manufacturers' investment grades to Ba3. The reclassification lifts the two companies out of the below investment grade ranking for the first time in seven years.
The new grading is the first one the automakers have received since South Korea was hit by a financial meltdown in 1997. Kia suffered greatly from the meltdown, collapsing under its debt load—Hyundai subsequently acquired its rival.
An official from Kia Motors expected that the raised grading would enable both companies to secure the financial resources needed for large-scale overseas projects such as building Kia’s new plant in Slovakia. Hyundai has large overseas operation in the U.S., China, and Turkey.
The new grading is the first one the automakers have received since South Korea was hit by a financial meltdown in 1997. Kia suffered greatly from the meltdown, collapsing under its debt load—Hyundai subsequently acquired its rival.
An official from Kia Motors expected that the raised grading would enable both companies to secure the financial resources needed for large-scale overseas projects such as building Kia’s new plant in Slovakia. Hyundai has large overseas operation in the U.S., China, and Turkey.
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