Moody's: South Korea view stable

Moody's Investors Service said it said North Korea's latest long-range missile test and its second nuclear detonation underscore the geopolitical event risk that South Korea faces from its communist neighbor, and more widely for the rest of Asia and globally.

North Korea's recent flurry of provocations has heightened uncertainties, Moody's said, but the stable outlook on South Korea's A2 sovereign ratings remains appropriate.

Geopolitical event risk has been primarily contained by South Korea's long-standing and trial-tested alliance with the United States, the agency said.

Additional factors that can help contain the risks include the gradual emergence of a more unified and consistent approach towards Pyongyang, Moody's said, and a low probability of unilateral U.S. military action.

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