Fitch affirms Korea

Fitch Ratings said it affirmed the Republic of Korea's long-term foreign-currency issuer default rating at A+, the long-term local-currency issuer default rating at AA, the short-term issuer default rating at F1 and the country ceiling at AA.

The outlook is stable.

The agency noted that Korea's sovereign credit fundamentals remain stable. Security risks across the Korean peninsula have mildly eased following the resumption of the six-party talks and Pyongyang's commitment to the action plan for denuclearization, Fitch said.

However, technical complications related to the transfer of North Korean funds from Macau's Banco Delta Asia has precluded a more timely implementation of the performance-based milestones towards dismantlement, the agency said. Fitch said it anticipates the ongoing progress within the auspices of the six-party talks will remain troubled, as North Korea continues to bide its time on clear steps towards dismantlement, possibly in exchange for further economic aid and concessions.

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