S&P lifts Hanjin International

S&P said it upgraded its ratings on Hanjin International Corp. to B from B- and its senior secured first-lien debt to BB- from B+. The recovery rating is 1.

Hanjin’s parent, Korean Air Lines Co. Ltd. guarantees the subsidiary’s term loan B and converted its $606 million intercompany loan into equity in February.

“The loan conversion has improved HIC's debt capital structure. It provides the U.S.-based hotel company a runway to ramp up its operations and become self-sustaining. Nonetheless, HIC remains highly leveraged, with a debt-to-EBITDA ratio of more than 10x,” S&P said in a press release.

The outlook is stable.

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