Global credit rating agency Moody's Investors Service gave a positive assessment of South Korea's environmental, social and corporate governance(ESG) factors in determining the nation's credit rating.

According to the Finance Ministry on Tuesday, Moody's gave South Korea the highest grade on its Credit Impact Scores(CIS) - CIS-One - which means that the country’s ESG are overall considered to have a positive impact on the country’s credit rating.

In the agency's Issuer Profile Scores(IPS), which measures 14 countries' exposure to ESG factors, South Korea scored E-Two, or Neutral-to-Low, and S-Two, or Neutral-to-Low, indicating its exposure to environmental or social issues are not material in differentiating credit quality.

The country scored G-One, or Positive, meaning its exposure to corporate governance factors positions it strongly with material credit benefits.

Based on the IPS scores, the countries were then assessed on the effect of their ESG on default risk and the rating.

A total of eleven countries, including South Korea, Germany and Switzerland, scored the highest on the CIS, followed by the U.S., Britain and 28 others ranking CIS-Two, or Neutral-to-Low.