Moody's Investor Services says it will maintain South Korea’s current sovereign credit rating of “A1” despite the death of North Korean leader Kim Jong-il.

Moody's also announced on Thursday that its outlook for South Korea's credit ratings remains stable.

In an annual report on South Korea, the credit ratings agency said it made the recent assessment after taking into account South Korea's economic and political strength.

Moody’s said although Kim’s death has raised uncertainty over Pyongyang’s power transition and government stability, the strong alliance between South Korea and the U.S. will serve as a clear war deterrent.