A global rating agency Thursday retained its sovereign credit rating on South Korea, citing its "strong credit fundamentals."
The "Aa3" rating "reflects the country's very high economic strength, institutional strength and fiscal strength, but moderate susceptibility to event risk from North Korea military provocation or regime instability," U.S.-based Moody's Investors Service said in a release.
"Further, South Korea has a strong external position, supported by its competitive export industries and large holdings of official foreign exchange reserves that reduce the economy's vulnerability to external shocks," Moody's said.
On the broader Asia region, the agency said it "expects credit quality to remain stable in 2015, given a gradual slowdown in China's growth, the ongoing recovery in the U.S. economy and supportive global liquidity conditions, despite gradual interest rate normalization in the United States."
reporter
Park Sae-jin
swatchsjp@ajunews.com
