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The Fitch Ratings Agency has reaffirmed South Korea’s government debt at AA-, though has some concerns about spillover in the event of a trade war between the US and China.

Key highlights

South Korea maintains AA- rating with a stable outlook.

S. Korea’s growth remains strong, country is resilient to fluctuations from geopolitical risk.

S. Korea’s long-term foreign currency issuer default rating (IDR) also rated at AA-.

S. Korea’s sovereign ratings balance robust external finances with strong macro performance, despite long-term ongoing geopolitical risk with North Korea.

Trade war between US and China represents a downside risk to S. Korea’s growth outlook.