Moody's: No change for South Korea

While encouraging, the eight-point agreement announced recently at the conclusion of the second summit in Pyongyang between the leaders of North and South Korea, the "Declaration for the Advancement of South-North Korean Relations, Peace and Prosperity" will not have any direct or immediate bearing on South Korea's credit fundamentals, according to Moody's Investors Services.

This is a continuation of the positive trend in geopolitical factors related to the six-party talks and a containment of the risks associated with North Korea's nuclear weapon and missile development activities already reflected in Moody's upgrade in July of South Korea's government bond ratings to A2 from A3, the agency said. North Korea does not issue bonds and has no ratings.

Further upward movement in South Korea's ratings will depend on favorable fiscal performance, including a reduction in government debt ratios and continued strength in South Korea's external payments position, Moody's said.

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