Fitch raises Korea’s credit rating to AA-

Only 10 days after Moody’s Investors Service raised Korea’s credit rating, Fitch Ratings, another international credit rating agency, upgraded the country’s credit level by one notch yesterday.

With yesterday’s upgrade, Korea has its highest-ever level by three international credit rating agencies since the country was first assessed in 1986.

The Ministry of Strategy and Finance announced yesterday Fitch upgraded the country’s credit level by one notch from the current A+ to AA-, the fourth-highest level given by the agency. The agency gave Korea a “stable” outlook.

It is the first time in seven years that Fitch upgraded Korea’s credit level. In October 2005, it raised the credit level from BBB+ to A+. It has taken 15 years for the country to return to the AA- level since the Asian financial crisis of 1997.

On Fitch’s list, Korea is on a higher level than Japan and China. On Moody’s, Korea ranks the same Aa3 level as its two Asian neighbors.

According to the Finance Ministry, it is the first time Korea outstripped Japan in a credit rating. Moody’s raised Korea’s level from A1 to Aa3 on Aug. 27.

By Song Su-hyun [ssh@joongang.co.kr]