20 February 2024news

Hyundai Commercial gets Moody’s rating

Carmaker Hyundai's financial captive has received a Baa1 outlook issuer rating from Moody's Investor Services. 

The newly granted rating is the second global credit rating for South Korea-based Hyundai Commercial after it received a ‘BBB (Positive)’ credit rating from Fitch Ratings in 2023.

HCI got its first investment grade rating from Fitch in December of last year.

Hyundai Commercial is the only captive financial company for the commercial vehicles sector of Hyundai Motor Group (HMG) and specialises in industrial finance and corporate finance. It was founded in 2007 as the finance and leasing company for commercial vehicles of Hyundai Motor Company (HMC).

Based on a broad range of expertise in the industry, Hyundai Commercial offers financial services tailored to customer needs, including commercial vehicle instalment, an industrial goods lease, and heavy equipment rental services. Additionally Hyundai Commercial has also expanded into a wider range of corporate financial businesses, including machinery and equipment finance, corporate loans, real estate finance and structures finance.

HCI said that Moody’s reported that the assessment took into consideration the high level of affiliate support with 37.5% ownership by HMC and Hyundai Commercial’s close business ties with HMC and HMG’s subsidiaries, including the provisions of captive finance for commercial vehicles and machineries, and non-captive financing for various deals and projects.

Moody’s assessment also reflects Hyundai Commercial’s good risk management and steady captive finance business which supports overall stable asset performance and profitability. Hyundai Commercial’s captive financing business accounts for around one-third of its operating assets as of 31 December 2023, and its non-captive business consists of financing for non-captive commercial vehicles and machineries, real estate project finance, general corporate loans and investments in non-performing loans as well as in private equity funds and private debt funds.

A Hyundai Commercial spokesperson said: “Moody’s issuer rating reflects Hyundai Commercial’s positive evaluation status within the global market.”

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