Kia Corporation welcomed Fitch Ratings' (Fitch) upgrade of the company's Long-Term Issuer Default Ratings (IDRs) and senior unsecured ratings to A- with a stable outlook from a previous rating of BBB+.

The rating upgrade reflects the continued improvement in Kia's brand strength and market position in key markets, Fitch said in its report. Geographical and product diversification as well as improved profitability and cash generation, and large liquidity buffers were also taken into consideration, it added.

Furthermore, Fitch cited that the A- rating reflects Kia's steadily improving business profile in recent years. Fitch also outlined how the brand's key market positions have been improved, with robust market position in the electric vehicle (EV) segment in the US and Europe.  

Kia also received an upgrade of the company's corporate rating to A3 with a stable outlook from Moody's Investors Service last week.