Oct. 30 (Bloomberg) -- Japan Airlines Corp., Asia’s biggest carrier, had its credit rating cut three levels to CCC from B by Japan’s Rating and Investment Information Inc. as the company seeks a fourth state bailout since 2001.

Japan Transport Minister Seiji Maehara said yesterday he will head a new team overseeing the restructuring of JAL. The carrier applied for funds from the state-affiliated Enterprise Turnaround Initiative Corp. as it heads for a fourth straight loss in five years on a plunge in international travel.

“The probability of debt adjustments, such as a debt waiver, is extremely high and concerns for failure to pay debts have risen,” R&I said in a statement. “With regard to existing bonds, all obligations, including secured debt, will most likely be subject to debt adjustments.”

CCC is defined as “high concern over the financial obligation of an issuer to be in default,” according to R&I. It is the fourth-lowest rating for non-investment grade debt.

The taskforce recommended getting rid of planes and cutting routes, said Kazuhiko Toyama, the deputy leader of the five- person panel yesterday. No other details about the proposals were revealed. The government has yet to decide whether it will give any funds to JAL, Maehara said yesterday, adding that the ETIC “will start from zero” in its assessment.

The organization was set up this month by the government and private companies with 1.6 trillion yen ($17.6 billion) in funds to help restructure companies and buy assets.

To contact the reporters on this story: Yusuke Miyazawa in Tokyo at ymiyazawa3@bloomberg.net

Last Updated: October 30, 2009 00:52 EDT