Hyundai Motor Company welcomed Moody’s Investors Service (Moody’s) upgrade of the company’s corporate rating to A3 with a stable outlook from a previous rating of Baa1 with a positive outlook.

Moody’s report showed that the rating upgrade reflects Hyundai Motor’s continued profitability and balance sheet improvements, underpinned by the company’s strengthened product competitiveness and strong free cash flow generation. Moody’s also mentioned that Hyundai Motor’s profitability will remain robust and the company’s substantial financial buffer will stay largely unbroken over the next one-two years, despite the increasing difficulties in the global automotive industry.

“This credit rating upgrade is significant and acknowledges our stable financial foundations amid challenging global economic conditions,” said Seung Jo Lee, Senior Vice President, CFO and Head of Planning & Finance Division at Hyundai Motor Company. “Hyundai Motor will pursue more substantial growth in the future, focusing efforts towards achieving its business goals for this year.”

Moody’s also mentioned that the A3 rating reflects Hyundai Motor’s strong position in the Korean automotive market, competitiveness in key overseas markets, high degree of geographic diversification, very low financial leverage and strong balance sheet.

In the meantime, Kia Corporation and Hyundai Mobis also received an upgrade of the companies’ corporate rating from Baa1 with a positive outlook to A3 with a stable outlook.