Moody’s assigns Hanjin loan B1

Moody’s Investors Service said it assigned a B1 backed senior secured rating to Hanjin International Corp.’s proposed term loan due 2022. The loan will be guaranteed by its parent, Korean Air Lines Co., Ltd. HIC’s ratings are under review for upgrade.

“The B1 rating on the term loan is higher than HIC’s B3 corporate family rating (CFR), reflecting the fact that the term loan benefits from a first lien on the company’s property in Los Angeles and ranks higher in priority than HIC’s existing inter-company loans from KAL,” said Sean Hwang, a Moody’s assistant vice president and analyst, in a press release.

HIC will primarily use the proceeds to refinance part of its inter-company loans from KAL.

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