Moody's upgrades Hanjin International

Moody's Investors Service said it upgraded Hanjin International Corp.'s corporate family rating to B1 from B2 and the backed senior secured rating on its term loan to Ba2 from Ba3. Hanjin’s parent Korean Air Lines Co. Ltd. guarantees the loan, which is due in December.

"The rating upgrades primarily reflect the improving credit quality of the parent and guarantor KAL, which is mainly driven by KAL's significantly strengthened capital structure and liquidity. These factors will provide a reasonable buffer against the inherent volatility of the airline industry and KAL's planned acquisition of Asiana Airlines Co., Ltd.," said Sean Hwang, a Moody's assistant vice president and analyst, in a press release.

The outlook remains stable.

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