Fitch rates Korea bond A+

Fitch Ratings said it assigned an expected long-term foreign-currency rating of A+ to the Republic of Korea's forthcoming benchmark dollar-denominated global bond. The final rating is contingent on receipt of final documents.

The agency said that South Korea's long-term foreign-currency issuer default rating of A+ and stable outlook balance the sovereign's strengths in maintaining fiscal prudence, efforts at government debt reduction and healthy external finances against the fiscal risk of eventual reunification with North Korea.

Fitch added that although the current environment of tight credit conditions and weak global demand weigh down on immediate growth prospects, South Korea's economy has proven to be resilient over time, thanks to its diversified industrial and export base.

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