Major global credit ratings agencies

Major global credit ratings agencies are expected to pay keen attention to how well South Korea’s economy is prepared for any crisis during their annual talks with policymakers here this year, the finance ministry said Tuesday.

“Credit ratings agencies’ main interest will be placed on our crisis-management capacity in the financial sector… along with other factors such as geopolitical risks,” the ministry said in a press release.

The ministry added the agencies will also be interested in the possibility that populist measures pushed by campaign pledges ahead of major elections this year could hurt the government’s policy consistency and the overall fiscal health.

Moody’s Investors Service will send its delegation to South Korea in May for annual talks aimed at assessing the country’s latest economic situations. Fitch Ratings and Standard & Poor’s will send their experts for similar meetings in mid-July, according to the ministry.

The results of the annual meetings will be reflected in the assessment of their respective sovereign credit ratings.

Currently, Moody’s retains its sovereign rating on South Korea at A1, the fifth-highest on its 21-rating scale. Fitch and S&P hold Korea’s credit rating at A plus and A, the fifth- and sixth-highest in their evaluation schemes.

Leave a Reply