SEOUL: Standard & Poor’s raised South Korea’s sovereign currency rating to AA-minus from A-plus, commending the strength of its economic growth, decline in short-term debt component of external borrowings, and reduced foreign indebtedness of its banks.
“(South) Korea will maintain economic growth performance superior to most developed economies in the next three to five years,” the agency said in a statement.
It said the decline in its short-term debt composition and the reduced indebtedness of South Korean banks had cut the risk of a significant deterioration in external financing conditions.
The agency also affirmed the sovereign’s AA-minus local currency rating. The outlook on both ratings is stable.
