The global credit rating agency Fitch on March 6 said it kept the country's sovereign rating at "AA-" with a "stable" outlook. Shown is Fitch headquarters in New York. (Yonhap News)

By Lee Kyoung Mi

The global credit rating agency Fitch on March 6 said it kept Korea's sovereign rating at "AA-" with a "stable" outlook.

"AA-" is the agency's fourth-highest rating, something Korea has stayed at for 12 straight years since its upgrade from "A+" in 2012.

Fitch said, "Korea's rating balances robust external finances, resilient macroeconomic performance and a dynamic export sector against geopolitical risks related to North Korea, lagging governance indicators relative to 'AA' category peers and structural challenges from an ageing population."

The economy is expected to grow 2.1% this year, with semiconductors, which have recently led the country's export rebound, to continue positive growth through next year due to demand related to artificial intelligence.

The nation's fiscal deficit will decline due to government efforts for fiscal consolidation, Fitch added, with the possibility of a further drop in the red figure beyond 2025.

On this forecast, the Ministry of Economy and Finance said, "The government will keep closely communicating with global credit rating agencies to reaffirm Korea's consistent and sound fiscal stance and do everything it can to improve external credibility by actively explaining policy directions for raising economic growth potential such as that for 'dynamic economy.'"

km137426@korea.kr