Key Points
- Hyundai and Kia received A ratings from S&P, Moody’s, and Fitch, joining an elite group of global automakers.
- The companies achieved a 10.7% operating profit-to-sales ratio in the first half of 2024.
- Hyundai and Kia are focusing on hybrids as they navigate the challenges of the global EV market.
- The automakers’ flexible production capabilities and strategic shifts have contributed to their high credit ratings and market success.
Hyundai Motor and Kia have achieved A ratings from the world’s leading credit rating agencies—S&P Global Ratings, Moody’s, and Fitch Ratings—recognizing their strong financial management and adaptable vehicle production capabilities. This accomplishment places the South Korean automakers in an elite group, alongside only four other global carmakers—Mercedes-Benz, BMW, Toyota, and Honda—who have received top ratings from all three agencies.
The recent upgrade from S&P Global Ratings, which raised Hyundai and Kia’s credit ratings from BBB+ to A-, highlights the companies’ robust operating profit ratio, driven by solid hybrid and electric vehicles (EVs) sales. In the first half of 2024, Hyundai Motor Group, including Hyundai and Kia, achieved a combined operating profit-to-sales ratio of 10.7%, the highest among global carmakers.
This impressive financial performance is largely due to their diversified product mix and growing global market share. Hyundai and Kia’s ability to swiftly adapt to shifts in market demand has been a significant factor in their success. In response to the early challenges faced by the global EV market, the companies have strategically emphasized hybrid vehicles, positioning themselves to navigate the evolving landscape of automotive electrification.
The top ratings from S&P, Moody’s, and Fitch have allowed Hyundai and Kia to surpass many of their competitors in creditworthiness. For instance, major automakers like General Motors, Ford, and Stellantis have received B ratings from the agencies, while Volkswagen holds a BBB+ rating from S&P.
A Hyundai Motor official commented on the achievement: “The high worldwide evaluations reflect our product and brand competitiveness, profitability, financial soundness, and global market position. The agencies forecasted that our balanced portfolio, including both EV and hybrid models, will enable us to adapt to market changes during the electrification transition period.”
Moving forward, Hyundai Motor Group aims to maintain its financial stability and enhance its global competitiveness by responding flexibly to market dynamics, ensuring sustained growth and success in the rapidly changing automotive industry.
