국제신용평가사 피치, 한국 국가신용등급 "안정적" 유지
The COVID-19 pandemic has continued to leave its mark on the global economy.
This year, the highest number of countries have received downgraded ratings or outlooks by the three major global credit appraisers including Fitch.
Yet, South Korea has managed to maintain its 'double-A-minus' level for over eight years.
Kim Sung-min explains why such a decision is even more important this year.
Global credit assessor Fitch Ratings has decided to keep South Korea at double-A-minus, the fourth-highest...with an outlook of "stable."
Korea has kept this rating since 2012 and continues to do so despite a global economic downturn caused by COVID-19.
Fitch said it based its decision on South Korea's steady economic performance,... despite certain challenges including North Korea and an aging society.
It added that...although the pandemic is weighing on the economy, South Korea has limited the damage through robust policy responses.
Though the level has remained the same for over eight years, this recent affirmation is meaningful...since a record number of countries have seen their outlooks or credit ratings downgraded this year.
Ratings of countries including the UK and Canada have been downgraded, and the U.S. and Japan have received scaled-back outlooks.
"We have been keeping the supply and demand of foreign exchange in a stable condition, although the country has seen a recession in trade surplus. And I assume they kept the rating for South Korea, considering its asset market stability."
However, some experts suggest that, although maintaining the same level is positive, caution is still advised.
"The fact that a global credit agency has assessed South Korea's economy in a positive way is meaningful. However, it is also true that some of their past ratings did not fully reflect the upcoming difficulties."
With the on-going uncertainties, Fitch forecasts the nation's GDP to contract by one-point-one percent this year.
But this is still a smaller decline than the Bank of Korea's projection of a one-point-three percent contraction...and an average seven-point-one contraction of countries with the same credit rating.
Kim Sung-min, Arirang News
