S&P ups Hyundai Motor Group credit outlook to positive

SEOUL, June 7 (Yonhap) -- Standard & Poor's Rating Services (S&P) said Tuesday it upgraded its credit outlook on four Hyundai Motor Group companies to positive from stable, citing their stronger market position and improved profitability.
"We revised to positive from stable the outlook on the long-term corporate credit ratings on Hyundai Motor Co., Kia Motors Corp., Hyundai Mobis Co. and Hyundai Glovis Co., and we affirmed the 'BBB' long-term corporate credit and debt ratings on the companies," S&P said in an e-mailed statement.
The global credit appraiser said the upgrade reflects its view that Hyundai Motor and Kia Motors will continue to enhance their financial profiles over the next 12-18 months based on strengthening global market positions and improving profitability.
The two automakers are expected to achieve robust sales growth and boost their global presence, said S&P. It, however, added that part of the automakers' growth is attributable to Japan's earthquake and tsunami, which hurt the production of Japanese automakers.
Hyundai Motor and Kia Motors, which are flagships of the world's No. 5 automotive group, Hyundai Motor Group, recently posted a record market share in the United States. The group sold 107,426 vehicles in the American market last month, taking up 10.1 percent of the local market, up from 7.3 percent during the same month a year earlier.
mil@yna.co.kr