Seoul: Hyundai Rotem Co., the defense systems manufacturing arm of Hyundai Motor Group, announced Monday that its credit rating has been upgraded by all three major domestic appraisal agencies. This upgrade reflects the company's improved profitability and financial stability.
According to Yonhap News Agency, Korea Ratings, Korea Investors Service, and NICE Investors Service have all recently elevated Hyundai Rotem's credit rating from A+ to AA-. The company attributes this improvement to its strong debt repayment capability, enhanced earnings, and overall financial stability.
Hyundai Rotem reported an order backlog of approximately 30 trillion won (US$20.3 billion) last year, along with its first-ever annual operating profit of 1 trillion won. Korea Investors Service noted that the company has established a stable long-term earnings base by securing high-value orders in its defense solutions segment.
Looking ahead, Hyundai Rotem plans to invest 1.8 trillion won in sectors such as unmanned and manned defense systems and aerospace. The company aims to maintain financial stability through its strong cash flow capacity.