Moody's, S&P still doubt future of Korean Air, Asiana

Credit rating agencies here and overseas are still maintaining a cautious stance regarding their ratings for Korean Air and its affiliates, saying there remain uncertainties over the air carrier's owner Hanjin Group's plan to acquire Asiana Airlines. Moody's Investors Service said Thursday its review for upgrading Hanjin International's ratings will focus on the completion of Korean Air's proposed equity issuance scheduled for March next year, the progress in its proposed acquisition of Asiana and the company's plans to address the near-term debt maturities. The US rating agency began to consider upgrading the credit rating of the wholly owned Korean Air subsidiary which manages the Wilshire Grand Center building in Los Angeles, after the announcement of the historic aviation deal last month. "The review for upgrade reflects our expectation that the proposed acquisition, if completed, will significantly improve Korean Air's scale and competitive position," Moody's analyst Sean Hwang said. "Additionally, Korean Air's planned equity raising and increased importance to the Korean economy will substantially mitigate the risk associated with Asiana's poor liquidity and financial leverage."<br/>