Despite Mounting Downside Pressure
"A downside pressure on Korea's sovereign credit rating is getting bigger. Currently, however, we are not considering adjusting Korea's sovereign credit rating," Bloomberg News reported on September 4, quoting the comment of Kim Eung-tan, an analyst in charge of national credit ratings at S&P.
In August of last year, S&P upgraded Korea's sovereign credit rating by one notch from “AA-“ to “AA” and maintained Korea's sovereign credit rating and a “stable” rating outlook even in the height of a tension on the Korean peninsula last month.
However, as North Korea launched missiles and made a provocation with the sixth nuclear test on September 3, concern over Korea's credit risk are growing as time goes on.
According to Bloomberg data, at 4:26 pm on the day, Korea’s credit default swap (CDS) premium rose to 65bp (1bp = 0.01%p), which was an increase of 5bp from the closing price of the previous day.