Moody`s cuts Kia's rating to non-investment grade

(ATTN: UPDATES throughout with details; CHANGES headline)
SEOUL, April 21 (Yonhap) -- Moody's Investors Service Inc. on Tuesday downgraded
the debt of Kia Motors Corp. (KMC) to a non-investment grade, citing its weak
financial position.
Kia's rating was cut by one notch to Ba1, or the non-investment grade, from Baa3,
Moody's said in a statement. Moody's also cut its long-term debt outlook for Kia
to negative from stable.
The non-investment grade, or speculative investment, is assigned to companies for
which it is difficult to predict their future development.
"The rating action primarily reflects KMC's limited ability to turn around its
weak financial profile amid the highly challenging operating environment," said
Chris Park, a senior analyst at Moody's
The rating also considers lingering concerns over Kia's heavy dependence on
short-term debt, Moody's said.
Kia is a unit of Hyundai Motor Co., South Korea's top automaker.
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