October 13, 2017 10:48
Global ratings firm Fitch said Thursday that a war between North and South Korea is unlikely, quelling fears of a credit downgrade for the South.
"While the current level of tension is high, strains on the Korean Peninsula are not new," Fitch said in a statement.
It pointed to a similar "pattern of rise-and-fall cycles" in the past and maintained South Korea's sovereign rating at AA- with a stable outlook.
The rating has been unchanged since September 2012.
However, Fitch noted that increasing geopolitical risks on the Korean Peninsula could have a negative impact on South Korea's economy by exacerbating business and consumer sentiment. It added that South Korea's solid growth trend and sound fiscal conditions are positive factors but cautioned against the country’s high level of household debt.
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