Global rating agency Moody's Investors Service has said its Aa3 sovereign credit rating and positive outlook for South Korea is based on expectations that the nation will continue to maintain sustained and strong economic growth in the long term despite external uncertainties.
 
In a statement on Wednesday, released along with a report on the South Korean government's credit analysis, Moody's said South Korea's debt ratio is at a favorable level compared with competing nations due to a cautious fiscal policy.
 
In the report, Moody's rated South Korea's economy and fiscal capacity as very high and its sensitivity to unforeseen risks as moderate.
 
In April, the agency affirmed South Korea's Aa3 rating and upgraded its outlook from stable to positive.