국제 신용평가사인 무디스가 21일 기아차의 신용등급을 기존 'Baa3'에서 'Ba1'으로 하향 조정했다. 등급 전망은 '부정적'으로 제시했다. 이와 함께 등급 자체를 철회한다는 의견을 밝혔다.
별도의 발표문에서 무디스는 현대차에 대해서는 기존 등급인 'Baa3'와 등급 전망 '부정적'으로 유지한다고 밝혔다.
이 과정에서 무디스는 현대차의 등급이 금융 및 산업 자회사의 과도한 단기채무 의존 때문에 낮을 수밖에 없다면서 단기 채무 대비 EBITDA 비율 4배 수준을 유지해야 할 것이라고 밝혔다.
무디스는 이 비율에 금융 자회사는 제외되지만 기아차는 통합적으로 본다는 점을 덧붙였다.
아래는 무디스의 발표문 전문이다.
Moody's downgrades Kia Motor's rating to Ba1; outlook negative
Hong Kong, April 21, 2009 -- Moody's Investors Service has downgraded Kia Motors Corp's ("KMC") issuer rating to Ba1 from Baa3 and withdrawn the rating. At the same time, Moody's has assigned a Ba1 Corporate Family Rating to KMC. The rating outlook is negative. This concludes Moody's review for downgrade initiated on 21 January 2009.
"The rating action primarily reflects KMC's limited ability to turn around its weak financial profile amid the highly challenging operating environment, despite its continued out-performance in terms of auto sales compared to global rivals," says Chris Park, a Moody's Vice President and Senior Analyst.
Despite a modest earnings improvement on the back of a healthy 8.4% YoY growth in shipments in 2008, KMC's key credit metrics remain weak due to hefty negative free cash flow and inflated debt stemming from depreciation of the Korean won. While KMC's aggressive pricing strategy and robust new model launches should allow it to continue out-performing the market on the back of the weak won, its profitability will likely remain pressured due to elevated price cuts and lower utilization. Coupled with large capex requirements, the company's leverage and cash flow measures should remain weak for its rating over the next 1-2 years.
The rating also considers lingering concerns over KMC's heavy dependence on short-term debt, though some comfort is derived from the supportive banking sector and the company's ability to raise funds in local capital markets.
On the other hand, KMC's final Ba1 rating factors in two-notch uplift based on the high willingness and financial capability of its parent, Hyundai Motor Company ("HMC" rated Baa3/negative), to render financial support to the company in a distressed scenario.
The negative outlook reflects significant challenges and uncertainty facing KMC, including volatile exchange rate movements, risk of a more severe downturn in the global auto industry, and sustainability of market out-performance. This also reflects the likelihood that KMC's key financial metrics will remain inconsistent with its stand-alone rating in the intermediate term.
The rating outlook could be stabilized if KMC (i) improves its liquidity profile through reducing its dependence on short-term debt; and/or (ii) strengthens its financial profile on the back of sustained market out-performance, market recovery and/or disciplined capex/working capital management. This could be evidenced by retained cash flow/net debt of above 15-17% and debt/EBITDA of below 6-6.5x on a sustained basis.
On the other hand, the rating could be downgraded if the company's operating cash flow substantially deteriorates as a result of worse than anticipated market conditions, or KMC's inability to out-perform the market and contain working capital deficits. This could be evidenced by its retained cash flow/net debt dropping below 10-13% and debt/EBITDA rising above 7x on a sustained basis. Downward pressure may also arise from further deterioration in its liquidity position
The principal methodology used in rating this issuer is Moody's Rating Methodology for Global Automobile Manufacturer Industry, which can be found at www.moodys.com in the Credit Policy & Methodology directory, in the Ratings Methodologies subdirectory.
Moody's last rating action on KMC was taken on 21 January 2009, when the company's Baa3 rating was placed under review for possible downgrade.
Established in 1944, KMC is the second largest automaker in Korea and, together with HMC, commands the fifth largest position in the global automotive market.
Moody's confirms Hyundai Motor's Baa3 rating; outlook negative
Approximately US$75 million in debt securities affected
Hong Kong, April 21, 2009 -- Moody's Investors Service has confirmed the Baa3 issuer and senior unsecured bond ratings of Hyundai Motor Company ("HMC") and its guaranteed subsidiary, Hyundai Motor Manufacturing Alabama LLC. The rating outlook is negative. This concludes Moody's review for downgrade initiated on 21 January 2009.
"The rating confirmation recognizes HMC's relatively robust sales performance despite the severe downturn in the global automobile industry. This is supported by good product offering in the compact sedan segment, a highly-diversified geographical sales mix and the benefits of the weak Korean won," says Chris Park, a Moody's Vice President/Senior Analyst.
"The rating also considers Moody's expectations that the group will continue to enjoy strong liquidity support from the Korean banking sector. Meanwhile, management initiatives to reduce inventories so as to free up cash will also limit cash leakage," says Park.
On the other hand, the rating is tempered by its financial/industrial subsidiaries' heavy reliance on short-term debt as well as HMC's contingent liabilities towards them. In addition, the challenging operating environment surrounding the global automobile industry, together with HMC's planned capex programs, should keep its near-term debt/EBITDA (consolidating Kia Motor, rated Ba1/negative but excluding finance subsidiaries) at around 4x which is weak for the rating.
The negative outlook reflects the degree of uncertainty the company faces, including volatile exchange rate movements, risk of a more severe downturn in the global auto industry and sustainability of market out-performance. It also takes into account concerns that HMC's key financial metrics could remain below levels required for the Baa3 rating in the near term.
The rating outlook could be stabilized if (i) HMC's key subsidiaries improve their liquidity profiles through reducing dependence on short-term debt; and/or (ii) HMC strengthens its financial profile on the back of sustained market out-performance, market recovery and/or disciplined capex/working capital management. This could be evidenced by retained cash flow/net debt above 30-35% and debt/EBITDA below 3.5-4.0x on a sustained basis.
The rating could be downgraded if the company's operating cash flow substantially deteriorates as a result of worse-than-anticipated market conditions or should it prove unable to outperform the market and contain working capital deficits. Downward pressure may also arise from a significant materialization of its contingent liabilities, including retained cash flow/net debt below 30% and debt/EBITDA above 4x on a sustained basis.
The principal methodology used in rating this issuer is Moody's Rating Methodology for Global Automobile Manufacturer Industry, which can be found at www.moodys.com in the Credit Policy & Methodology directory, in the Ratings Methodologies subdirectory.
Moody's last rating action on HMC was taken on 21 January 2009, when the company's Baa3 rating was placed on review for possible downgrade.
HMC, headquartered in Seoul, Korea, is the world's fifth largest and Korea's dominant automotive maker. Together with its subsidiary, Kia Motors Corp ("KMC"), HMC produced a total of 4.2 million auto units in 2008.
별도의 발표문에서 무디스는 현대차에 대해서는 기존 등급인 'Baa3'와 등급 전망 '부정적'으로 유지한다고 밝혔다.
이 과정에서 무디스는 현대차의 등급이 금융 및 산업 자회사의 과도한 단기채무 의존 때문에 낮을 수밖에 없다면서 단기 채무 대비 EBITDA 비율 4배 수준을 유지해야 할 것이라고 밝혔다.
무디스는 이 비율에 금융 자회사는 제외되지만 기아차는 통합적으로 본다는 점을 덧붙였다.
아래는 무디스의 발표문 전문이다.
Moody's downgrades Kia Motor's rating to Ba1; outlook negative
Hong Kong, April 21, 2009 -- Moody's Investors Service has downgraded Kia Motors Corp's ("KMC") issuer rating to Ba1 from Baa3 and withdrawn the rating. At the same time, Moody's has assigned a Ba1 Corporate Family Rating to KMC. The rating outlook is negative. This concludes Moody's review for downgrade initiated on 21 January 2009.
"The rating action primarily reflects KMC's limited ability to turn around its weak financial profile amid the highly challenging operating environment, despite its continued out-performance in terms of auto sales compared to global rivals," says Chris Park, a Moody's Vice President and Senior Analyst.
Despite a modest earnings improvement on the back of a healthy 8.4% YoY growth in shipments in 2008, KMC's key credit metrics remain weak due to hefty negative free cash flow and inflated debt stemming from depreciation of the Korean won. While KMC's aggressive pricing strategy and robust new model launches should allow it to continue out-performing the market on the back of the weak won, its profitability will likely remain pressured due to elevated price cuts and lower utilization. Coupled with large capex requirements, the company's leverage and cash flow measures should remain weak for its rating over the next 1-2 years.
The rating also considers lingering concerns over KMC's heavy dependence on short-term debt, though some comfort is derived from the supportive banking sector and the company's ability to raise funds in local capital markets.
On the other hand, KMC's final Ba1 rating factors in two-notch uplift based on the high willingness and financial capability of its parent, Hyundai Motor Company ("HMC" rated Baa3/negative), to render financial support to the company in a distressed scenario.
The negative outlook reflects significant challenges and uncertainty facing KMC, including volatile exchange rate movements, risk of a more severe downturn in the global auto industry, and sustainability of market out-performance. This also reflects the likelihood that KMC's key financial metrics will remain inconsistent with its stand-alone rating in the intermediate term.
The rating outlook could be stabilized if KMC (i) improves its liquidity profile through reducing its dependence on short-term debt; and/or (ii) strengthens its financial profile on the back of sustained market out-performance, market recovery and/or disciplined capex/working capital management. This could be evidenced by retained cash flow/net debt of above 15-17% and debt/EBITDA of below 6-6.5x on a sustained basis.
On the other hand, the rating could be downgraded if the company's operating cash flow substantially deteriorates as a result of worse than anticipated market conditions, or KMC's inability to out-perform the market and contain working capital deficits. This could be evidenced by its retained cash flow/net debt dropping below 10-13% and debt/EBITDA rising above 7x on a sustained basis. Downward pressure may also arise from further deterioration in its liquidity position
The principal methodology used in rating this issuer is Moody's Rating Methodology for Global Automobile Manufacturer Industry, which can be found at www.moodys.com in the Credit Policy & Methodology directory, in the Ratings Methodologies subdirectory.
Moody's last rating action on KMC was taken on 21 January 2009, when the company's Baa3 rating was placed under review for possible downgrade.
Established in 1944, KMC is the second largest automaker in Korea and, together with HMC, commands the fifth largest position in the global automotive market.
Moody's confirms Hyundai Motor's Baa3 rating; outlook negative
Approximately US$75 million in debt securities affected
Hong Kong, April 21, 2009 -- Moody's Investors Service has confirmed the Baa3 issuer and senior unsecured bond ratings of Hyundai Motor Company ("HMC") and its guaranteed subsidiary, Hyundai Motor Manufacturing Alabama LLC. The rating outlook is negative. This concludes Moody's review for downgrade initiated on 21 January 2009.
"The rating confirmation recognizes HMC's relatively robust sales performance despite the severe downturn in the global automobile industry. This is supported by good product offering in the compact sedan segment, a highly-diversified geographical sales mix and the benefits of the weak Korean won," says Chris Park, a Moody's Vice President/Senior Analyst.
"The rating also considers Moody's expectations that the group will continue to enjoy strong liquidity support from the Korean banking sector. Meanwhile, management initiatives to reduce inventories so as to free up cash will also limit cash leakage," says Park.
On the other hand, the rating is tempered by its financial/industrial subsidiaries' heavy reliance on short-term debt as well as HMC's contingent liabilities towards them. In addition, the challenging operating environment surrounding the global automobile industry, together with HMC's planned capex programs, should keep its near-term debt/EBITDA (consolidating Kia Motor, rated Ba1/negative but excluding finance subsidiaries) at around 4x which is weak for the rating.
The negative outlook reflects the degree of uncertainty the company faces, including volatile exchange rate movements, risk of a more severe downturn in the global auto industry and sustainability of market out-performance. It also takes into account concerns that HMC's key financial metrics could remain below levels required for the Baa3 rating in the near term.
The rating outlook could be stabilized if (i) HMC's key subsidiaries improve their liquidity profiles through reducing dependence on short-term debt; and/or (ii) HMC strengthens its financial profile on the back of sustained market out-performance, market recovery and/or disciplined capex/working capital management. This could be evidenced by retained cash flow/net debt above 30-35% and debt/EBITDA below 3.5-4.0x on a sustained basis.
The rating could be downgraded if the company's operating cash flow substantially deteriorates as a result of worse-than-anticipated market conditions or should it prove unable to outperform the market and contain working capital deficits. Downward pressure may also arise from a significant materialization of its contingent liabilities, including retained cash flow/net debt below 30% and debt/EBITDA above 4x on a sustained basis.
The principal methodology used in rating this issuer is Moody's Rating Methodology for Global Automobile Manufacturer Industry, which can be found at www.moodys.com in the Credit Policy & Methodology directory, in the Ratings Methodologies subdirectory.
Moody's last rating action on HMC was taken on 21 January 2009, when the company's Baa3 rating was placed on review for possible downgrade.
HMC, headquartered in Seoul, Korea, is the world's fifth largest and Korea's dominant automotive maker. Together with its subsidiary, Kia Motors Corp ("KMC"), HMC produced a total of 4.2 million auto units in 2008.
