The international credit ratings agency Moody's on May 12 said it maintained Korea's sovereign rating at "Aa2 (stable)." (Yonhap News) 

By Joung Haseung 

The international credit ratings agency Moody's on May 12 said it raised its projection for Korea's economic growth to 3.5% this year. 

This is up from Moody's 3.1% forecast made in February.

"Korea's Aa2 sovereign rating with a stable outlook reflects the very strong fundamentals that have underpinned its resilient recovery from the pandemic shock," the agency said. "Korea's GDP contracted 1.0% in 2020, outperforming most of its similarly rated advanced economy peers."

Moody's maintained Korea's sovereign rating and outlook at "Aa2 (stable)," the third-highest level after "Aaa" and "Aa1." Korea has the second-highest rating in Asia after Singapore's "Aaa."

Korea has maintained its rating since December 2015.

Hong Kong and Taiwan are rated "Aa3," or just one level below Korea's, and China and Japan are each rated "A1," or two levels lower.

The Ministry of Economy and Finance said in a statement, "(The rating) has reconfirmed global trust and positive views of our economy's recent response to the crisis and excellent recovery capacity." 

"We will continue doing our best to enhance our credibility by closely communicating with Moody's on our economic trends and pending issues."

jhaseung@korea.kr