Moody's rates Hanjin loan Ba3

Moody's Investors Service said it assigned a B2 corporate family rating to Hanjin International Corp.

Moody's also said it assigned a Ba3 rating to the proposed $600 million senior secured term loan borrowed by Hanjin and guaranteed by its parent, Korean Air Lines Co., Ltd.

The outlook is stable.

The proceeds from the senior secured term loan will be used to repay existing borrowings, including its Arirang bond of about $210 million and project finance loan of $300 million, the agency said.

The ratings are dependent upon the satisfactory documentation and successful completion of Hanjin's refinancing, including the $300 million senior unsecured note due in October 2017 that is guaranteed by the Export-Import Bank of Korea (Kexim), Moody's said.

The failure of meeting such conditions could pressure the ratings, the agency added.

Hanjin's B2 corporate family rating primarily reflects its weak financial metrics of at least more than the next two- to three-years, limited operating history and high concentration risk associated with its single-location operations, Moody's said.

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