MOODY’S SOVEREIGN RATING FOR KOREA
Moody’s Reaffirms
Korea’s Sovereign Rating at Aa2
Moody’s reaffirmed Korea’s sovereign rating at Aa2 with a stable outlook reflecting the very strong fundamentals that have underpinned its resilient recovery from the pandemic shock. It’s the second highest rating recorded among Asian countries after Singapore. Moody’s also projected Korea’s GDP to rebound by 3.5% in 2021, up 0.4% from its February forecast of 3.1%.
Korea’s future response
Moody’s maintaining Korea’s rating at Aa2 reaffirms that Korea’s crisis management and resilient recovery are highly evaluated by the international communities. In April 28, S&P Global Ratings also kept Korea’s sovereign rating at AA with stable outlook reflecting the fast and strong recovery.
Moody’s mentioned Korea’s debt rising to historically high levels, thus testing the long-established track record of fiscal discipline. However, the agency expects Korea’s debt affordability to remain strong. In this regard, the government will work together with the National Assembly on the enactment of the national fiscal rules, as well as exerting its utmost effort to secure financial stability by improving fiscal aggregate management when drawing up the 2021-2025 Fiscal Management Plan.
Please refer to the attached pdf