Despite South Korea lowering its growth rate for this year,... global ratings agency Standard & Poor's has kept the country's rating stable at AA.
It said the South Korean economy remains stable despite some potential downside risks.
Yoon Jung-min has the details.
Standard & Poor's has maintained South Korea's sovereign credit rating at (double-A) AA for over three years now.
The global ratings agency explained South Korea's economy has strong fundamentals and is well-diversified, meaning it doesn't depend on a certain industry or export.
It added the country's growth rate is solid compared to other high-income countries.
It also forecast South Korea's GDP per capita to rise from about 32-thousand U.S. dollars this year to 35-thousand dollars in 2022.
Short-term GDP growth is expected to hover at around 2-percent,... according to the ratings agency.
S&P saw South Korea's economy as rather stable,... based on its foreign bond status and sound fiscal performance, which is unlikely to turn to a deficit even though the government's revenue is slowly declining.
However, S&P said South Korea's exports have been slowing... and the trade spat between Seoul and Tokyo has raised uncertainties, which in turn have affected investment sentiment.
It recommended South Korea increase its productivity, especially considering its rapidly aging population.
It also warned of higher household debt, but took into account efforts to lower the risks of bankruptcy by reining in the lending sector.
Another possible risk, the agency says, is the security threat posed by North Korea.
S&P has kept South Korea's rating at (double-A)AA since August 2016,... when it was upgraded from (double-A-minus)AA-.
Other global ratings agency,... including Moody's and Fitch, also have South Korea's rating as stable.
Yoon Jung-min, Arirang News.