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[Sponsored Report] Hyundai Capital credit outlook now upgraded

Published: 04 Feb. 2014, 22:09

Hyundai Capital announced Monday that its credit rating outlook has been upgraded to BBB+ by Standard & Poor’s. The financial services company’s decision bears significance because some countries and financial institutions are currently facing downgrades in credit ratings amid ongoing global economic uncertainties.

Since Fitch Ratings affirmed Hyundai Capital at BBB+ in 2012, the company’s credit rating has seen a continuous rise, having also been rated A+ by JCR and Baa1 by Moody’s. Several factors were cited as reasons for this, including because Hyundai Capital, Hyundai Motor Group’s financial arm, promotes the sale of Hyundai-Kia automobiles through installment plans and auto leases while pursuing joint marketing strategies with the group. The auto financier has also expanded its overseas foothold, strengthening its business portfolio as a result.

“It is increasingly important to diversify the financing channels as a provider of auto leasing,” said Hyundai Capital in a press release. “The upgraded credit ratings outlook will improve the stance of Hyundai Capital in the international bond market, as well as cut costs for financing.”

By Park So-yeon [[email protected]]