Korea Investors Service (KIS) has cut HMM’s and Hanjin Shipping’s ratings in difficult markets.

HMM was downgraded to B+ from BB and Hanjin to BB+ from BBB-.

The HMM decision reflects an uncertain recovery in the industry, plus continued operating losses, the Moody’s-linked company said.

KIS added that Hanjin faced delays in its earnings recovery in sluggish markets.

The government has denied that the two shipowners are to merge following market rumours.