The Finance Ministry announced Monday that global rating agency Standard and Poor’s(S&P) upgraded South Korea's sovereign credit rating by one notch from AA minus to AA with an outlook of “stable.”
 
It marked the first time in eleven months for the agency to raise South Korea’s rating and the first time for the agency to give the AA rating to the country.
 
S&P said in a statement that the upgrade reflects its “assessment that Korea's strong record of steady growth has generated a prosperous economy, greater fiscal and monetary flexibility, and continual improvements in external metrics.”
 
It went on to say that its “ratings on Korea reflect the country's favorable policy environment, sound fiscal position and net external creditor position.”
 
The agency’s “AA” rating is the third highest out of its 21-level rating system.
 
With the latest upgrade, South Korea stands a notch higher than China and two notches higher than Japan in terms of sovereign credit rating.
 
The only two countries that S&P has given the “AA” rating are Britain and France. However, both nations' outlook stands at "negative."
 
The Finance Ministry assessed that the upgrade for South Korea is unprecedented as it came at a time when rating agencies are downgrading ratings of countries around the world, whether they are advanced or emerging economies.
 
A ministry official said that the upgrade is expected to play a key role in differentiating South Korea's economy from that of other countries amid times when economic uncertainties are expanding worldwide.