All three major international credit rating agencies have recently upgraded Korea’s sovereign debt rating, throwing a vote of confidence on the nation’s ability to cope with a volatile global financial environment. Moody’s raised Korea’s credit rating from ‘A1’ to ‘Aa3’ on August 27, citing the nation’s fiscal soundness, economic vitality and competitiveness, improved financial sector, and effective handling of geopolitical risks. Moody’s also lifted Korea’s credit rating outlook to ‘positive’ from ‘stable’.

Meanwhile, Fitch upgraded Korea’s credit rating by one notch, from ‘A+’ to ‘AA-’, on September 6. Fitch listed steady growth, favorable fiscal fundamentals, low unemployment rate, and scope for fiscal and monetary flexibility as the Korean economy’s strengths. On September 14, Standard & Poor’s (S&P) raised Korea’s credit rating from ‘A’ to ‘A+’, citing reduced geopolitical risks in the Korean peninsula and the resilience of the Korean economy.

* Source : 『Monthly Economic Bulletin』 Vol.34 No.9 (Ministry of Strategy and Finance and Korea Development Institute)