Moody's upgrades Hanjin International

Moody's Investors Service said it upgraded Hanjin International Corp.'s corporate family rating to B2 from B3. Simultaneously, it raised the backed senior secured rating on the company's term loan due December 2022, which is guaranteed by its parent, Korean Air Lines Co., Ltd., to Ba3 from B1.

Moody's has also revised the outlook to stable from under review. This rating action concludes the review for downgrade started on Nov. 19, the agency said.

"The upgrade reflects KAL's improving liquidity and capital structure following its large rights offering, the proceeds of which will sufficiently address the cost of KAL's acquisition of Asiana Airline Inc. and the risks related to the latter's weak debt leverage," said Sean Hwang, a Moody's assistant vice president and analyst, in a press release.

"The improvement in KAL's credit quality will in turn benefit HIC's credit quality, given the very high likelihood that KAL will provide financial support to HIC when needed," added Hwang.

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