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

South Korea has kept this rating, the fourth-highest, since 2012.

Fitch said South Korea's rating balances robust external finances, steady macroeconomic performance and sufficient fiscal headroom amid the COVID-19 pandemic against geopolitical risks related to North Korea, aging demographics and moderate productivity growth.

The rating agency continued that though the pandemic has weighed on South Korea's growth and public finances, the country’s response has helped limit the deterioration of the situation compared to other advanced economies and "AA" peers.

Fitch also projected the South Korean economy will contract by a modest one-point-one percent this year.