The upgrade moves S&P’s ratings for Hyundai and Kia from ‘BBB+ with a positive outlook’ to ‘A- with a stable outlook’, reflecting the brands’ development in establishing a leading market position and delivering solid financial performance.

This achievement follows similar upgrades earlier this year from ratings agencies Moody’s and Fitch, which both also upgraded Hyundai and Kia’s ratings. This places the brands in the same elite category as global heavyweights like Mercedes-Benz, Toyota and Honda as the only automotive companies to receive upgrades from the ‘big three’ ratings agencies in 2024.

What has driven the ratings upgrade?

The S&P Global upgrade highlights Hyundai and Kia’s strong profitability, driven by a smart mix of products and a balanced but strategic focus on electric and hybrid vehicles. The agency pointed out the companies’ increasing market share, particularly in the U.S., where their SUVs are making waves, winning awards and notching strong sales results.

“Hyundai Motor and Kia should be able to sustain strong profit and cash generation, even amid a tougher global automotive market,” S&P Global reported, adding that Hyundai and Kia have “a competitive lineup of battery electric vehicles (BEV) and hybrids to respond to the transition to electrification.”

It’s this commitment to innovation by Hyundai and Kia – especially in the electric vehicle (EV) and hybrid spaces – that’s positioned them perfectly to ride the industry-wide wave towards electrification.

The future is bright for the brands too, as S&P Global’s stable outlook indicates confidence that both Hyundai and Kia will continue to perform strongly in the years ahead.