Korean economy is competent to deal with risks: global ratings agencies

[THE INVESTOR] The South Korean economy has a degree of policy space to tackle and contain domestic risks and geopolitical shocks, senior officials from global ratings agencies told Finance Minister Yoo Il-ho.

Yoo, who is on a US trip to attend the conferences of the World Bank and the International Monetary Fund, held separate meetings with senior officials from Moody‘s, Standard and Poor’s and Fitch on Oct. 8 in Washington.

During the meetings, officials from the ratings agencies told Yoo that South Korea’s policy space can cope with household debt, the aging population and geopolitical risks.

Standard & Poor’s raised its credit rating of the Korean economy to “AA” from “AA-” in August.

In December last year, Moody‘s upgraded South Korea’s rating to “Aa2” from “Aa3.” Fitch has reaffirmed South Korea‘s rating at “AA-.”

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