S&P Global Ratings has reaffirmed South Korea’s sovereign credit rating at AA with a stable outlook, citing the country’s resilient economic fundamentals and prudent fiscal management despite global uncertainties.
The decision, announced on Tuesday, maintains Korea’s long-term foreign currency rating at AA, the third-highest on its sovereign ratings table, which it has held since August 2016, when the agency upgraded it from AA-.
The stable outlook reflects S&P’s view that the country’s sound policy framework and strong external balance sheet will continue to anchor its creditworthiness over the medium term.
On Tueseday, the main Kospi stock index finished up 0.9% at 2,477.4, while the Kosdaq closed up 0.4% at 711.9 S&P’s reaffirmation comes after the country’s Constitutional Court permanently removed President Yoon Suk Yeol from office earlier this month for his short-lived declaration of martial law on Dec. 3.
Analysts say the retained rating will help preserve investor confidence as the country faces complex challenges ranging from demographic headwinds to intensifying competition in key industries such as semiconductors and batteries.
South Korea’s AA rating puts it on par with countries such as France and the United Arab Emirates, and two notches below the highest possible AAA rating.
Finance Minister Choi Sang-mok (third from left) presides over a meeting with foreign investors on Dec. 12 to discuss the country's business conditions in the wake of the botched martial law declaration Meanwhile, Moody's Ratings has maintained its sovereign credit rating of Korea at Aa2, its third-highest, since December 2015.
Fitch Ratings has maintained Korea's rating at AA-, its fourth-highest, since September 2012.
On Tuesday, the main Kospi stock index finished up 0.9% at 2,477.4, while the Kosdaq index closed up 0.4% at 711.9.
Write to In-Soo Nam at isnam@hankyung.com Jennifer Nicholson-Breen edited this article.
