Japanese rating agency ups S. Korea's rating outlook

SEJONG, April 12 (Yonhap) -- A Japanese credit rating agency said Thursday that it has raised South Korea's sovereign rating by one notch, citing eased geopolitical tension and the country's sound economic fundamentals.

The Japan Credit Rating (JCR) increased its rating for Asia's fourth-largest economy to "AA-" from "A+," with the rating outlook remaining "stable."

The political situation of South Korea has stabilized under the Moon Jae-in government, ending monthslong uncertainties stemming from the impeachment of the former president, the JCR said.

The potential for improvement of the situation related to North Korea has been growing since the beginning of this year following agreements on inter-Korean and U.S.-North Korea summits, it added.

On the economic front, the country has achieved economic advances driven by its export industries, and its solid external position has been entrenched thanks to its industrial competitiveness. The stability of the financial system has been steadily improving, as measures taken by the government to address chronic household debt have made progress.

Moody's Investor Service upgraded the rating for South Korea to "Aa2" in 2015, the third-highest level on the company's table, while Standard and Poor's also gave the country a grade rise to "AA" in 2016. Fitch has maintained its fourth-highest "AA-" rating for Asia's fourth-largest economy since 2012.

sam@yna.co.kr
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