April 19, 2024
Automobiles
Moody’s maintains Hyundai, Kia ratings
[THE INVESTOR] Moody’s Investors Service said on April 6 it will maintain the current ratings for Hyundai Motor and Kia Motors despite their sluggish sales in China.
“Although Hyundai and Kia sales in China will likely have a short-term negative impact on their profitability and cash flow, we do not expect this development to last over the longer term,” Yoo Wan-hee, Moody’s vice president and senior credit officer, said in a statement.
He expected a strong balance sheet for the two companies and the current level of profitability to provide “adequate buffers” in their Baa1 ratings category.
In March, their vehicle shipments in China plunged 44 percent and 68 percent, respectively, from a year earlier.
By Song Seung-hyun and newswires (ssh@heraldcorp.com)
“Although Hyundai and Kia sales in China will likely have a short-term negative impact on their profitability and cash flow, we do not expect this development to last over the longer term,” Yoo Wan-hee, Moody’s vice president and senior credit officer, said in a statement.
He expected a strong balance sheet for the two companies and the current level of profitability to provide “adequate buffers” in their Baa1 ratings category.
In March, their vehicle shipments in China plunged 44 percent and 68 percent, respectively, from a year earlier.
By Song Seung-hyun and newswires (ssh@heraldcorp.com)
