Regains 'BBB+' Rating for the First Time in 10 Years
On December 23, Asiana Airlines decided to issue 200 billion won in perpetual bonds through a board resolution to strengthen its capital base.
The purpose of issuing the perpetual bonds is to proactively bolster capital and improve the debt ratio in response to the sharp rise in the won-dollar exchange rate and the continued trend of high exchange rates since the first half of the year, thereby enhancing financial soundness.
In a recent credit rating review, Asiana Airlines received an upgrade of one notch to a 'BBB+' rating. This marks the first time in ten years since 2015 that the company has regained a BBB+ rating. The main factors behind the upgrade include the removal of merger-related uncertainties following the completion of the cargo business unit sale in August, and the confirmation of Asiana Airlines' importance within the group and the parent company's commitment to support, as evidenced by Korean Air's full acquisition of perpetual convertible bonds during the refinancing in November.
A representative from Asiana Airlines stated, "Thanks to the credit rating upgrade and expectations for the merger, we have successfully issued perpetual bonds based solely on our own credit for the first time in about seven years since 2019, without any credit enhancement from the market." The representative added, "We will continue our efforts to strengthen financial soundness to ensure a stable integration."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
