S&P rates Hanjin International, loan

S&P said it assigned its B- long-term corporate credit rating to Hanjin International Corp., a wholly owned subsidiary of Korean Air Lines Co. Ltd.

The outlook is stable.

At the same time, the agency assigned its B+ issue rating to Hanjin's proposed $600 million senior secured first-lien term loan due 2020, which is guaranteed by Korean Air Lines. The recovery rating is 1, indicating an expectation of very high (90%-100%, rounded estimate: 95%) recovery in the event of a payment default.

S&P said the rating on Hanjin reflects uncertainty in the company's operating performance over the next one to two years and the likelihood of support from Korean Air Lines group when Hanjin faces a distressed scenario.

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