The global ratings agency S&P on April 28 said it kept Korea's sovereign credit rating at "AA." (Yonhap News)

By Sarah Oqelee and Lee Jihae

Standard and Poor's (S&P) on April 28 said it kept Korea's sovereign rating and economic forecast at "AA" (stable).

"AA" is the international credit ratings agency's third-highest level and a grade Korea has maintained since August 2016.

S&P said Korea has suffered smaller economic damage due to COVID-19 than other high-income countries, and can expect relatively high growth over the next three to five years. The pandemic is unlikely to significantly affect the economy's solid growth, it added.

S&P forecast Korea's growth this year at 3.6%, 3.1% next year, and 2.5% in each 2023 and 2024.

If Korea's economy grows as expected, it added, GDP per capita will reach USD 42,400 by 2024.

S&P's announcement reflects the results of its annual consultations conducted in November last year with the Korean government.

The Ministry of Economy and Finance said, "S&P's decision to maintain Korea's sovereign credit rating reaffirms international trust in the Korean economy amid economic difficulties after the outbreak of COVID-19."

"In the wake of the pandemic, 113 countries have had their sovereign credit ratings and forecasts downgraded, thus our country maintaining its existing rating is highly significant."

sarahoqelee@korea.kr