SEOUL, Sept. 24 (Xinhua) -- Global credit appraiser Standard & Poor's Ratings Services on Tuesday affirmed South Korea's sovereign credit rating at "A-plus" with a "stable" outlook. "Our ratings on Korea reflect its favorable policy environment, sound fiscal position and net external creditor position,"S&P said in a statement.
The rating company said that the country's policies have helped to promote economic development and stabilize domestic economy during recent periods of severe global economic stress, noting that major policy changes were generally announced in advance.
Consistent current account surplus along with the internationally and actively traded South Korean currency also helped to mitigate risks arising from the foreign-currency indebtedness of the country's financial sector, S&P said.
Healthy fiscal position was cited as a positive factor. South Korea has seen general government surpluses in most years since 2000, and the net general government debt was projected at 23 percent of GDP in 2013.
Geopolitical risks on the Korean Peninsula were picked as a chief weakness."Korea faces the prospects of bearing the uncertain, but likely heavy costs of a reunification,"said the company.
S&P said the Democratic People's Republic of Korea (DPRK) will not experience significant political instability in the next few years, but it noted that it could lower the country's sovereign rating on signs that political instability in the DPRK threatens to prolong heightened security tensions on the Korean Peninsula.