International credit rating agency Fitch maintained Korea’s national credit rating at ‘AA-, stable’.
The Ministry of Strategy and Finance announced on the 17th that, amid continued high uncertainty in the global macroeconomic and financial markets, Fitch announced the results of Korea’s national credit rating evaluation in the second half of this year.
Until early last year, Fitch had repeatedly expressed concerns about Korea’s credit rating outlook due to the rapid increase in national debt.
However, recently, he highly praised the government’s efforts for fiscal soundness and expressed support for the Korean government’s budget plan for next year, saying, “The Korean government’s budget plan is an expression of its will to maintain sound fiscal management.”
For reference, Fitch downgraded the U.S. credit rating last August due to vulnerabilities in the financial sector.
In addition to its positive evaluation of improvement measures in the financial sector, Fitch also mentioned ▲good external soundness, ▲macroeconomic resilience, and ▲export sector dynamism as strengths of the Korean economy in this national credit rating assessment.
In addition, it was explained that structural problems due to aging and geopolitical risks such as North Korea were also reflected when calculating the rating.
In particular, Fitch predicted in this evaluation report that the growth of the Korean economy will recover and the level of fiscal deficit will continue to decline thanks to the government’s efforts to strengthen its finances.
Meanwhile, Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho has been actively explaining the Korean government’s economic risk management and structural improvement efforts, including fiscal policy, to major international credit rating agencies such as Fitch.
The Ministry of Strategy and Finance plans to continue its efforts to maintain and strengthen its external credibility through frequent communication with Fitch.
☞ Original text https://app.fitchconnect.com/article/PR_10249889
Source: Policy Briefing (www.korea.kr)
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