SEOUL, March 26 (Yonhap) -- Moody's Investors Service said it has raised its credit outlooks of Hyundai Motor Group's three affiliates to 'stable' from 'negative,' while maintaining Baa1 ratings for the companies.
The companies are Hyundai Motor Co., its smaller sister Kia Corp. and auto parts maker Hyundai Mobis Co.
Moody's, one of the world's three biggest credit ratings agencies together with S&P Global Ratings and Fitch Ratings, said in a statement that the automaking group's affiliates are expected to see their profitability improve in the coming years.
"The outlook changes to stable of Hyundai Motor, Kia and Hyundai Mobis reflect our expectation that the companies' profitability will improve over 2021-22 from weak levels over the past 2-3 years, supported by their improving product mix and a rebound in auto sales," Moody's Vice President Yoo Wan-hee said in the statement.
The ratings firm said Hyundai Motor Group's large net cash position and a rebound in sales of Hyundai and Kia models in global markets were factored in the outlook revision.
It forecast global auto unit sales will grow by 7 percent in 2021 and about 6 percent in 2022, after a significant decline of 1 percent in 2020 amid the COVID-19 pandemic.
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