International ratings agency S&P has kept Korea's sovereign credit rating at "AA." Shown are containers piled at the Port of Pyeongtaek in Pyeongtaek, Gyeonggi-do Province. (Yonhap News)

By Kim Seon Ah

S&P has kept Korea's sovereign credit rating at "AA."

The global ratings agency on April 29 said it maintained the rating at the third-highest level after "AAA" and "AA+" and the long-term outlook as "stable." Korea was rated just behind the U.S. (AA+) but the same as the U.K.

The evaluation is the first by a leading rating agency since the war in the Middle East broke out.

S&P forecast the Korean economy to grow 1.9% this year amid accelerated momentum, though citing as a short-term risk factor instability in the global energy market due to the Mideast conflict.

The agency added that Korea's industrial competitiveness focused on semiconductors and fiscal policy will alleviate this burden.

S&P predicted stable growth over the mid- to long term, saying, "We forecast Korea's real per capita GDP will grow by approximately 2.1% annually over 2026-2029--to just over US$44,000 in 2029, from approximately US$36,500 in 2026."

Expecting improved fiscal soundness, the agency added that the general government deficit would fall from 1.4% this year to 1.1% next year.

sofiakim218@korea.kr