Global credit rating agency Moody’s has maintained South Korea’s sovereign credit rating at Aa2.

A Moody’s team visited South Korea in August, meeting with government ministries and major companies, and released its annual review report on the country last week.

Aa2 is the third-highest rating on the agency’s table, below Aaa and Aa1.

Regarding short-term economic prospects, Moody’s said in the report that while domestic demand recovery remains weak, government support for increased consumption, an improvement in the semiconductor sector, and monetary easing are expected to drive growth of one percent this year and one-point-six percent next year.

Moody’s also noted that high reliance on global trade is a key factor for potential rating changes, adding that the critical issue is whether the country can overcome the impact of population aging through structural reforms while maintaining growth potential and fiscal sustainability.