S&P rates Hanjin loan B+

S&P said it assigned its B+ long-term issue rating to Hanjin International Corp.'s planned $400 million senior secured first-lien term loan due 2025. The recovery rating is 1, indicating very high (90%-100%, rounded estimate: 100%) recovery in default.

The rating reflects the position that parent Korean Air Lines Co., Ltd. will help with Hanjin’s maturing debt, S&P said.

HIC intends to use the proceeds to refinance its $344 million term loan, and the remaining to either repay loans from the parent or for operational expenses.

The outlook is stable.

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