Global credit rating agency Moody's Ratings has maintained South Korea's Aa2 rating with a "stable" outlook.

The finance ministry said on Friday that Moody’s maintained the country’s rating at the third-highest level on its sovereign ratings table with a stable outlook, holding the same rating the country has had since December 2015, when it was upgraded by a notch from Aa3.

Explaining the reasons behind its assessment, Moody’s reportedly cited South Korea's very high degree of economic diversity and competitiveness, its still-strong fiscal buffers, and vigilant institutional management around key challenges. 

The rating also reflects risks of Korea’s aging society, slowing productivity and North Korea risks. 

Moody’s forecast the South Korean economy to grow two-point-five percent this year.