Global rating agency Moody's Investors Service has maintained its sovereign credit rating on South Korea at Aa2, which is the third highest rating in the agency’s credit rating system.

The Finance Ministry said that Moody’s announced the decision on Monday citing South Korea’s strong economic resilience, healthy fiscal conditions, structural reforms and decreased vulnerability to external risk factors.

Moody’s said that South Korea is, however, facing challenges in maintaining its competitiveness, citing debts held by public organizations and households as well as geopolitical risks.

In December last year, Moody's upgraded South Korea's credit rating from Aa3 to Aa2, the highest-ever rating the country has received from the agency.