Moody's upgrades three Korean Air ABS deals

London
Source:
This story is sourced from Pro
See more Pro news »

Moody's Investors Service has upgraded the ratings of the secured floating rate notes issued by three of Korean Air's future air ticket or cargo receivables deals to Aa3 (sf) from A1 (sf).

The upgrades involve KAL Japan ABS 5 Cayman's 40 billion yen ($509 million) secured floating rate notes due 2013; KAL Japan ABS 6 Cayman's 20 billion yen secured floating rate notes due 2014; and KAL ABS 8 Cayman's $300 million secured floating rate notes due 2014.

The rating upgrades follows Moody's announcement that it has upgraded the foreign currency long-term senior unsecured rating of Korea Development Bank (KDB) and Korea Finance Corporation (KoFC) to Aa3 from A1.

KDB was the facility provider on KAL Japan ABS 6 Cayman and KAL ABS 8 Cayman while KoFC was the credit facility provider on KAL Japan ABS 5 Cayman.

Moody's says the rating on the notes in each deal is highly linked to the rating of the credit facility provider that provides an unconditional and irrevocable credit facility for the timely payment of scheduled principal and interest on the notes.