Global credit appraiser Fitch Ratings has retained its "AA-" rating for South Korea with a rating outlook of "stable."

Fitch issued a statement, saying South Korea's external finances are robust and its macroeconomic performance is strong, counterbalancing geopolitical risk related to North Korea tensions and longer-run challenges of rapid population aging and low productivity.

Fitch described Korean Peninsula tensions as part of a familiar pattern of rise-and-fall cycles, and said it is important to differentiate between recent escalations and the overall likelihood of war.

Fitch has maintained its fourth highest AA- grade for South Korea since September 2012.