Asiana Airlines Liquidity at Risk on Junk Rating Warning
- Its debt has trigger for repayment if ratings drop to junk
- Auditor said Korean airline faces ‘material uncertainty’
An Asiana Airlines A380.
Photographer: Daniel Slim/AFP via Getty Images
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Concern about Asiana Airlines Inc.’s liquidity is rising after two rating firms warned its debt score may be cut to junk due to a lack of transparency in its 2018 financial report.
The South Korean carrier’s BBB- rating, the lowest investment-grade level, was put on negative review by both Korea Investors Service and NICE Investors Service on Friday after Asiana got a “qualified” opinion for its annual report from its auditor, Samil PricewaterhouseCoopers.