Fitch Ratings has maintained South Korea's sovereign credit rating at AA- with a stable outlook. 

In a statement Tuesday, the global credit appraiser said South Korea's rating “balances robust external finances, steady macroeconomic performance and a record of sound fiscal management against evolving geopolitical risks related to North Korea and medium-term structural challenges from aging demographics and low productivity.” 

Fitch said South Korea's 2020 budget, enacted in December, "implemented significant fiscal stimulus to confront sluggish growth prospects." The agency added that it believes the country “has the fiscal space to utilize near-term fiscal stimulus.” 

However, it was quick to warn that if the debt-to-gross domestic product ratio rises to about 46 percent in 2023, the move could exert more meaningful pressure on the rating over the medium-term.  

Fitch has maintained the current rating since raising it a notch from A+ in September 2012. AA- is Fitch's fourth-highest investment grade.