Global rating agency Moody's Investors Service has reaffirmed that its third-highest credit rating and “stable” outlook for South Korea remain unchanged despite the coronavirus outbreak.
In its “credit opinion” released on Monday, Moody’s said although the global spread of COVID-19 poses an unprecedented crisis to the South Korean economy, the country will regain its growth impetus in the mid-term.
It pointed out that the pandemic could affect various aspects of Asia's fourth-largest economy, including trade, supply chains, investment and tourism, adding that some industries and financial institutions are under pressure to face rate cuts. However, it said the virus' impact on the country's sovereignty rate will be limited.
The agency said South Korea’s sovereignty rate rather depends on the country’s ability to maintain its economic growth and stable fiscal conditions amid a fast aging population.
Moody’s has maintained South Korea's rating at "Aa2” since December 2015.