Moody’s Rates S. Korea Stable

Global rating agency Moody’s Investors Service maintained its rating on South Korea at a record high of Aa2, with its rating outlook also remaining stable, despite domestic political issues, the finance ministry here said Tuesday, Yonhap reported. Moody’s said in its latest report that South Korea is expected to retain its economic growth over the long term with a higher per capita gross domestic product. “Our assessment of Korea’s economic strength is based on the economy’s size diversity and competitiveness, which will help the country achieve reasonably robust medium-term growth, against the background of very high per capita income,” said the agency. “Challenges exist and are predominantly centered on the administration’s ability to implement structural reforms against the background of a rapidly aging society and relatively high exposure to China’s economic slowdown.” Fiscal and monetary policies of Asia’s fourth-largest economy have successfully managed to keep relatively low inflation rates and contributed to stable economic growth.