Moody's assigns Ba2 to Hanjin loan

Moody's Investors Service said it assigned a Ba2 backed senior secured rating to Hanjin International Corp.'s planned term loan due 2025. Parent Korean Air Lines Co., Ltd. will guarantee the loan.

"The Ba2 rating on the term loan is higher than HIC's B1 corporate family rating (CFR), reflecting the fact that the term loan will benefit 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 use most of the proceeds of the transaction to refinance its Ba2-rated senior secured term loan due December 2022.

HIC's outlook remains stable.

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