SEOUL, Aug 28, 2024 – Hyundai Card is proud to announce that S&P Global has upgraded its credit rating from BBB Positive to BBB+ Stable. This upgrade comes just eight months after the previous rating in January, marking a significant improvement in a short period.
Following this rating upgrade, Hyundai Card has now achieved a BBB+ rating from all three of the world’s leading credit ratings agencies: S&P Global, Moody’s, and Fitch. Hyundai Card expects that this high evaluation in the global market will likely enhance its international bond issuance and expand its opportunities for global partnerships.
S&P Global highlighted Hyundai Card’s role as a strategically important subsidiary of Hyundai Motor Group (the Group). The agency noted that the exceptional support from the Group contributed to the credit upgrade. On the same day, the credit ratings for Hyundai Motor Company and Kia Corporation were also upgraded from BBB+ Positive to A- Stable.
S&P Global anticipates Hyundai Card playing a significant role in the Group’s long-term strategy of promoting sales of new cars manufactured by Hyundai Motor and Kia. This is due to Hyundai Card’s private label credit card (PLCC) not only contributing to new car sales but also expanding the Group’s strategic payment business, such as In-Car Payment (ICP).
S&P Global also recognized Hyundai Card’s stable asset quality, achieved through its proactive risk management. According to the 2024 first-half report, Hyundai Card’s business strategy, focused on financial soundness and prime members, resulted in the industry’s lowest delinquency rate of 0.71%.
S&P Global predicts that Hyundai Card will be able to solidify its position in the competitive Korean credit card market, based on its strong business relationship with the Group.
A representative from Hyundai Card noted that acquiring BBB+ ratings from all three global credit rating agencies has enhanced the company’s external credibility and status. They further expressed that Hyundai Card anticipates an expansion in financial funding and global partnerships, leveraging this prime opportunity.
