Moody's: Korea bond ceiling at Aa1

Moody's Investors Service said it has realigned Korea's local-currency bond ceiling to Aa1 from Aaa as part of an initiative to make more comparable and consistent its sovereign ceilings and ratings and to reflect better country risk concepts.

Korea's A2 foreign- and local-currency government ratings, Aa3 foreign-currency bond ceiling, A2 foreign-currency bank deposit ceiling and Aa1 local-currency bank deposit ceiling are unaffected by this action, Moody's said.

The outlook is stable.

The local-currency country ceiling for bonds summarizes general country-level risks that should be taken into account in assigning local-currency ratings to locally domiciled obligors, or locally originated structured finance transactions, the agency said.

Moody's said it decided that the risks presented by the potential for armed conflict or geopolitical disturbances with North Korea should be incorporated into the local-currency bond ceiling as it is incorporated for other countries.

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