Near-1,000% Debt Level to Worsen for Korean Air as Won Seen Weak

Korean Air Lines Co. ended last year with a credit rating downgrade and debt-to-equity ratio approaching 1,000 percent -- the worst among Asian full-service carriers. Investors of the money-losing airline face an even bleaker 2017 as a weaker won raises the cost of repaying foreign debt.

The Korean currency is projected to weaken around 7 percent against the dollar by December, according to the median of forecasts in a Bloomberg survey of analysts. Korean Air’s foreign currency debt accounts for more than 70 percent of total borrowings.