Moody's Raises Korea's Credit Range

Credit rating agency Moody's has unprecedentedly raised Korea's sovereign credit range by two notches, saying the country's growth potential and stability are top notch.

According to the Ministry of Strategy and Finance, Moody's annual report on Korea last Wednesday maintained its A1 rating for the country but raised the range by two notches from "A3-A2-A1" to "A1-Aa3-Aa2." That is just two levels below the top rating range of "Aa2-Aa1-Aaa."

Moody's awards 21 different ratings to economies and groups three of them in ascending order showing their levels of creditworthiness.

"It is rare for a country's credit rating range to be raised by two notches, suggesting that Korea's sovereign credit rating could be raised in the near future," a ministry official said.

In the report, Moody's raised its evaluation of Korea's economic fundamentals from high to highest but maintained its evaluation of the risk of unexpected events at medium. It said just as increased terror attacks happened when Kim Jong-il took over power from his father Kim Il-sung in North Korea, his heir apparent Kim Jong-un may have been responsible for attacking the South Korean Navy corvette Cheonan in March.

englishnews@chosun.com / Aug. 02, 2010 13:44 KST