Kia Motors, Securing `BB-` and `Ba3` in Overseas Credit Review
- Recently Announced by S&P and Moody`s
- Recognized for improvements in financial structure - strong market position in Korea and increase in exports
Kia Motors Corp. announced on the 12th that it received overseas long-term credit ratings of BB- and Ba3, respectively, from the worldwide evaluation institutions of S&P (Standard & Poor’s) and Moody’s. As well, credit prospects in the future were marked as ‘Stable`.
The credit rating that Kia recently received was an upper middle rating, which is favorable for attracting funding from overseas. S&P and Moody`s granted the ratings by evaluating positively the improvements made in financial structure, better liquidity, the joint relationship with Hyundai Motor and improvement of productivity, strong market position within Korea, increase of market share rate in the US, the increase of exports and other factors.
For this purpose, Kia made a request to S&P and Moody`s in March for a credit evaluation. Representatives from these two institutions duly visited headquarters and plants of Kia Motors for three months, in the course of executing thorough diligence and a comprehensive corporate audit.
It is meaningful that Kia, which had no overseas credit evaluation rating to this point, has now secured international credibility with a mid- to upper range credit rating from the world’s largest credit-rating institutions. And with this as the foundation, Kia is now in a position to expect more customers and investment attraction, together with an increase of its brand exposure at home and overseas.
Kia now plans to secure a one-notch higher overseas credit rating, by realizing financial structure improvement and expanding domestic consumption and export through the acceleration of continuous substantive management.