S&P: Korea unchanged

Standard & Poor's said that the sovereign credit ratings on the Republic of Korea (A/stable/A-1, South Korea) would not be directly affected by missile launches by the Democratic People's Republic of Korea earlier today.

"Politically, the launches are likely to make negotiations in the six party talks more difficult and could possibly lead to further economic sanctions by the U.S. and Japan beyond the six-month freeze on the ferry service between North Korea and Japan announced this morning," said Takahira Ogawa, a sovereign credit analyst and director at S&P.

"But at this stage, it will not directly and significantly affect the macro economic outlook and fiscal position of South Korea."

The agency said that the baseline scenario on the North Korea issue remains that a peaceful solution will be found, although it could be protracted and may not be comprehensive.

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