South Korea rating unchanged amid tensions-S&P

NEW YORK, June 2 (BestGrowthStock) – Standard & Poor’s said on
Wednesday it was leaving South Korea’s sovereign credit rating
unchanged despite rising tensions with North Korea after Seoul
concluded its warship was sunk on orders from Pyongyang in
March.

In a statement, S&P said it expected the geopolitical
tensions on the Korean peninsula to remain within the bounds it
took into account when assigning ratings to South Korea.

S&P assesses South Korea’s sovereign foreign currency (Read more about trading foreign currency.
credit rating at A, a mid-range investment grade status. Both
Moody’s Investors Service and Fitch Ratings have South Korea
one notch higher at A1 and A-plus, respectively.

South Korea, also known as the Republic of Korea, has made
it clear it will not retaliate despite investigations that
found a torpedo fired by a North Korean submarine sank the
Cheonan corvette, killing 46 sailors.

North Korea is also known as The Democratic People’s
Republic of Korea (DPRK).

“The ratings on the Republic of Korea incorporate our view
of two primary risks: one, that a full-scale military conflict
could break out between the Republic of Korea and the DPRK, and
two, that the DPRK’s economy could collapse and reunification
could ensue,” S&P said in the statement.

“Notwithstanding the political succession issues that we
believe are currently being played out in the DPRK, Standard &
Poor’s still sees these two risks as low probability. If our
assessment of that probability were to increase materially,
however, we would likely revise our ratings on the Republic of
Korea,” S&P said.

Stock Market Research
(Reporting by Daniel Bases; Editing by Andrea Ricci)

South Korea rating unchanged amid tensions-S&P