Credit ratings company Moody's recently said it would upgrade South Korea's sovereign credit ratings from Aa3 to Aa2.
This is the first time that Asia's fourth-largest economy received Aa2 ratings from any of the top three ratings company including S&P and Fitch.
Currently, seven nations including the U.S., Germany, Canada, Australia, the U.K. and France receive ratings higher than As2 from Moody's.
The New York-based company predicted Korea's credit rating as "Stable." Early in April, Moody's retained Korea's rating as Aa3 and raised the prediction from "Stable" to "Positive."
The credit ratings firm said South Korea would see continued higher growth compared to other advanced nations for the next five years and its per capita income would come near to the level of advanced nations in Europe.
Korea's consolidated central government balance has maintained surplus since 2010 and it is expected to retain a 0.5 percent level of GDP. The government's debt-equity ratio of GDP is also predicted to maintain a 40 percent level, according to Moody’s.
South Korea’s foreign soundness has also improved as the balance of its foreign investment had a gain from 2014, its foreign debt of GDP is merely 30 percent and its short term debt reduced to below 30 percent.
Moody's predicted that the Korean government's four structural reforms in public, labor, finance and educational sector will be successful considering its past experience of overcoming financial crisis in the past.
