Fitch keeps sovereign rating at ‘AA-,’ expects 1.2% growth this year

Fitch on March 13 said it maintained Korea’s sovereign rating at “AA-” (stable).

The global ratings agency has kept Korea’s grade at “AA-,” Fitch’s fourth-highest rating, since upgrading it from “A+” in 2012.

Fitch also forecast economic growth in Korea of 1.2% this year, the same projection it made in December last year.

“Korea’s rating balances robust external finances, resilient macroeconomic performance and a dynamic export sector against geopolitical risks related to North Korea; lagging governance indicators; and structural challenges from an ageing population,” it said.

Fitch said exports led by semiconductors will remain stagnant through the middle of this year, adding that high interest rates will negatively affect investment and consumption.

The forecast, however, said next year’s growth will rebound to 2.7% as economic momentum will turn positive from the second half of this year.

The Ministry of Economy and Finance said, “Positive outlooks for the internal and external soundness of our economy were reaffirmed, and especially because of the government’s efforts to raise fiscal soundness, evaluations related to financial stability have continued to improve.”


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