South Korea's Korean Air Lines has suffered a downgrade of its credit ratings, attributed to its assistance to its financially troubled affiliate Hanjin Shipping.
Korean Air earlier this month decided to buy KRW400 billion worth of shares in the country's top shipping line, a buy that made it the largest shareholder of Hanjin with a 33.2 per cent stake.
Korean Air has already extended KRW250 billion in loans to Hanjin Shipping, whose ceo and chairman Cho Yang-ho also is chief executive of Korean Air.
Hanjin Shipping has suffered a loss for three consecutive years since 2011. Last year, its loss was KRW680 billion. In the first quarter of this year, its net loss reached KRW225 billion.
South Korea's Korean Air Lines has suffered a downgrade of its credit ratings, attributed to its assistance to its financially troubled affiliate Hanjin Shipping.
Korean Air earlier this month decided to buy KRW400 billion worth of shares in the country's top shipping line, a buy that made it the largest shareholder of Hanjin with a 33.2 per cent stake.
Korean Air has already extended KRW250 billion in loans to Hanjin Shipping, whose ceo and chairman Cho Yang-ho also is chief executive of Korean Air.
Hanjin Shipping has suffered a loss for three consecutive years since 2011. Last year, its loss was KRW680 billion. In the first quarter of this year, its net loss reached KRW225 billion.
