Keeping The Same Rating

Moody's maintained South Korea’s credit rating and outlook at Aa2 and stable, respectively.
Moody's maintained South Korea’s credit rating and outlook at Aa2 and stable, respectively.

 

Moody's maintained South Korea’s credit rating and outlook at Aa2 and stable, respectively. The effects that the ongoing Choi Soon-sil scandal can have on its economic policy were not reflected in the assessment at this time.

The Ministry of Strategy & Finance announced on November 1 that the international credit rating agency did so on October 31. Earlier in December last year, the agency had adjusted the sovereign credit rating of South Korea from Aa3 to Aa2, which is equivalent to S&P’s and Fitch’s AA. At present, S&P’s and Fitch’s sovereign credit ratings for South Korea are AA and AA-, respectively.

Moody’s explained that South Korea is currently engaged in fiscal policy for responding to a decline in economic growth rate and handling its national debts with stability while its external vulnerabilities have been reduced to the point of being capable of dealing with uncertainties in the global economic and financial markets. It also mentioned some downside risks such as slowdown in restructuring, weakening of mid- to long-term growth drivers, factors negatively affecting the South Korean government’s fiscal soundness and geopolitical risks associated with North Korea.

 

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