- Kia’s S&P Global credit rating upgraded from ‘BBB+’ to ‘A-‘, achieving an ‘A’ rating from the world’s top three credit agencies this year
- High worldwide evaluations reflect Kia’s product and brand competitiveness, profitability, financial soundness and global market position
SEOUL, South Korea, Aug. 22, 2024 /PRNewswire/ — Kia Corporation (Kia) announced that the global credit rating agency S&P Global has upgraded the credit rating from ‘BBB+’ to ‘A-‘. S&P Global presented a ‘Stable’ credit rating outlook for the company.
With this rating upgrade, Kia has received an ‘A’ credit rating from all three of the world’s major credit rating agencies this year, following ‘A3’ and ‘A-‘ upgrades from Moody’s Investors Service and Fitch Ratings respectively in February. These high worldwide evaluations reflect the company’s product and brand competitiveness, profitability, financial soundness and global market position.
S&P Global divides ratings into 22 levels from AAA to D to evaluate the credit of a country or company. The ‘A-‘ rating, the seventh highest credit rating, means that the credit status is good, and the credit risk is significantly low.
S&P Global based the upgrade on Kia’s stronger market position, which has led to solid profit and cash flow. This follows three years of marked enhancement in profitability starting in 2021. This stems from market share gains, product mix improvements, and some exchange rate tailwinds.
Also, they forecasted that the company’s balanced portfolio, including both EV and hybrid models, will enable it to adapt to market changes during the electrification transition. The ‘Stable’ outlook reflects the expectation that Kia will maintain robust profitability over the next 12-24 months.
Only six major global automotive companies, including Kia and Hyundai Motor Company, along with Toyota, BMW, Mercedes-Benz, etc., have achieved an A rating in S&P Global’s credit rating evaluation.
Kia plans to continue efforts to maintain financial soundness and strengthen global competitiveness by responding flexibly to market changes.
For more information, visit the Kia Global Media Center at www.kianewscenter.com