South Korea Keeping an Eye on US Credit Rating Decrease: Finance Ministry


SEOUL, Aug. 2 (Yonhap) — The South Korean government is closely monitoring the consequences of the US credit rating downgrade, the finance ministry reported Wednesday, observing that the event is likely to have only a limited effect on the market.

On Tuesday (US time), Fitch Ratings reduced the credit rating of the United States to AA+ from AAA, citing “repeated debt limit standoffs and last-minute resolutions.”

It marked the first downgrade of the world’s leading economy since 2011 when S&P Global Ratings lowered the rating by a notch to AA+.

“At present, the market is anticipating the result (of Fitch’s downgrade) will not be as considerable as the adjustment of the US credit rating by S&P in 2011,” First Vice Finance Minister Bang Ki-sun said during a gathering.

“But as the market volatility at home and abroad may expand with increasing demand for safer assets, we plan to maintain close coordination among related bodies, and take measures to stabilize the market if necessary,” he added.

The benchmark Korea Composite Stock Price Index, meanwhile, dropped 16.04 points, or 0.6 percent, to 2,651.03 as of 10:40 a.m.

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