Hyundai Card said on Friday that global rating agency Fitch revised its outlook on the Hyundai Motor Group's credit card unit to positive from stable while retaining its credit rating at BBB.
It is the card company's first revision from the ratings firm in 11 years, as its rating and outlook had stayed at BBB stable since July 2012.
In a rating action commentary released on March 30, Fitch attributed the rating upgrade mainly to Hyundai Motor Group -- the parent company of Hyundai Card.
“The positive outlook on the long-term issuer default rating mainly reflects the parent's improving capacity to provide support with an enhanced product mix and strengthened market position,” it said.
Fitch said that the credit card operator, which held a 17 percent market share, is a “strategically important subsidiary” of the carmaker that finances the majority of total credit-card purchases of autos sold by Hyundai Motor and its smaller subsidiary Kia in the domestic market.
Fitch also revised the Outlook on South Korea-based Hyundai Motor and Kia to positive from stable, while keeping their ratings at BBB+.
The outlook revision reflected the automakers’ solid business profile, including large scale, geographical diversification and continued strength in several major markets and segments, it said.
