Standard & Poor’s on Tuesday affirmed South Korea’s long-term sovereign credit rating at AA.
Yonhap News Agency reported that S&P also kept the country’s short-term rating unchanged at A-1+ and maintained its outlook at “stable.”
S&P said volatility in global energy markets had posed a risk to the South Korean economy, but that the country’s strong competitiveness in the electronics sector and supportive fiscal policy helped cushion the headwinds.
The agency said South Korea is expected to post a higher average growth rate than most high-income countries over the next three to four years. It added that trust in political stability was somewhat damaged by the 2024 declaration of martial law, but that the swift lifting of the measure, the response that followed and the launch of a new government through elections helped limit the negative impact.
After the assessment, the Ministry of Economy and Finance said that despite elevated domestic and external uncertainty, including the situation in the Middle East, positive overseas assessments of the South Korean economy remain firmly in place. It said it would do its best to keep the country’s credit standing stable.
* This article has been translated by AI.
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