S&P retains S. Korea's sovereign credit rating

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SEOUL, Jan. 12 (Yonhap) -- Standard and Poor's reaffirmed South Korea's sovereign
rating as an "A" and its long-term credit rating as "stable" in a statement
issued on Tuesday.
The global ratings services agency said South Korea's credit rating is supported
by the nation's dynamic economy, sound fiscal position and the modest net
external debtor position projected for the country.
"The sovereign credit ratings on Korea are supported by the nation's dynamic
economy, sound fiscal position, and a sizeable holding of foreign exchange
reserves. These strengths balance weaknesses arising from large contingent
liabilities and reduced monetary flexibility associated with banks' significant
short-term external borrowing," the statement said.
S&P also forecast Korea to register real GDP growth of 2.2 percent per capita in
2009-2011 on average, and expected the nation's foreign exchange reserves to rise
to close to US$300 billion in 2010.
S&P has kept the rating on South Korea unchanged since July 2005, when it was
raised from "A-minus" to "A."
The current credit rating is the sixth-highest level, but is still two notches
below what S&P gave to South Korea before it was hit by the Asian financial
meltdown a decade ago.
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