Hyundai Card Receives Credit Rating Upgrade from Standard & Poor’s
South Korean financial services company, Hyundai Card, has recently been upgraded by credit rating agency Standard & Poor’s (S&P). S&P has raised Hyundai Card’s status by one grade, while maintaining the credit rating outlook as ‘BBB Stable’.
This upgrade marks a significant milestone for Hyundai Card, as it is the first time the company’s rating status within the group has been upgraded since it received the S&P rating in 2006.
In a report released on the 23rd, S&P highlighted Hyundai Card’s growing importance within the Hyundai Motor Group. The agency upgraded the evaluation status of Hyundai Card from a grade 4 ‘Moderately Strategically Important Subsidiary’ to a grade 3 ‘Strategically Important’ within the group.
S&P acknowledged Hyundai Card’s contribution to Hyundai Motor Group’s future strategy, particularly through its In-Car Payment Service (ICP) business. The company’s collaboration with Hyundai Motor Company and Kia Motors, including the operation of a car-only credit card (PLCC) and various promotional activities with Hyundai Capital, has also strengthened its role within the group.
The PLCC, operated by Hyundai Card in partnership with Hyundai Motors and Kia Motors, has gained significant popularity, with over 2 million cumulative publications as of June last year. Furthermore, Hyundai Card’s specialized credit cards for electric vehicles, the ‘Hyundai EV Card’ and ‘Kia Member Electric Vehicle Credit Card’, have seen a rise in demand.
Last December, Hyundai Card and Hyundai Motor Company introduced ‘e hi-pass’, a pioneering initiative in the domestic card industry that allows for easy payment of road tolls without a physical card.
Despite the upgrade for Hyundai Card, S&P maintained Hyundai Motor Company’s credit rating at BBB (Stable). The agency cited the absence of additional points in the evaluation of related support as the reason for not upgrading the rating.
Hyundai Card announced on the 28th that Standard & Poor’s (S&P), one of the top three credit rating agencies in the world, has upgraded the Hyundai Card group status by one grade and maintained its credit rating outlook at ‘BBB Stable’.
Hyundai Card’s rating status within the group is being upgraded for the first time since 2006 when it received the S&P rating.
S&P, through a related report on the 23rd (local time), has upgraded the evaluation status of Hyundai Card within the group of significant subsidiaries grade 4 ‘MSI (Moderately Strategically Important Subsidiary, somewhat strategically important)’ to 3 grade ‘SI (Strategically Important)’ ‘.
S&P noted that Hyundai Card is strengthening its role in Hyundai Motor Group’s future strategy through the ICP (In-Car Payment Service) business through credit cards. In addition, Hyundai Motor Company (hereinafter referred to as Hyundai Motor Company) and Kia contribute to the sale of vehicles by operating a car-only credit card (PLCC) and promoting various collaborations with Hyundai Capital, etc., and business relations as the group strengthens, are evaluated as
In fact, PLCC, operated by Hyundai Card together with Hyundai Motors and Kia Motors, is gaining so much popularity that the cumulative publication exceeded 2 million at the end of June last year. The ‘Hyundai EV Card’ and ‘Kia Member Electric Vehicle Credit Card’, which are credit cards specialized for electric vehicles in line with the eco-friendly car trend, are also on the rise. In December last year, together with Hyundai Motor Company, it introduced ‘e hi-pass’, which enables the payment of road tolls without a physical card for the first time in the domestic card industry.
Meanwhile, Hyundai Card’s credit rating remained in place at BBB (Stable). S&P explained that Hyundai Motor Company maintained its rating because it did not receive additional points in the evaluation of related support in a situation where it was unable to upgrade its rating.
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