Hanjin Shipping downgraded to ‘default’

[THE INVESTOR] Korea Investors Service, one of the big three rating agencies here, slashed its ratings for Hanjin Shipping to “default” on Sept. 2, immediately after the shipper entered court receivership.

The cut took South Korea’s largest shipper from “C”, indicating “default imminent”, to “D” for “default”.

“Seoul Central District Court’s approval of Hanjin Shipping’s receivership is reflected in the decision,” said Kim Yong-geon, an official at KIS.

Earlier, two other agencies Korea Ratings and NICE Investors Service also lowered their credit assessment of Hanjin Shipping to “D”.

A local court on Sept. 2 approved debt-ridden Hanjin Shipping’s bankruptcy protection filing, after its creditors rejected to finance the shipper.

By Ahn Sung-mi (sahn@heraldcorp.com)