Standard & Poor's (S&P), one of the world's three major credit rating agencies, said on the 29th it will keep Korea's sovereign credit rating at AA. AA is S&P's third-highest rating after AAA and AA+. It is lower than the United States (AA+) and the same level as the United Kingdom.
S&P said it would keep Korea's sovereign credit rating at AA and maintain the outlook at "stable," the same as before. Among the three major agencies, S&P is the first to release a credit outlook after the Middle East war.
S&P said, "Korea's economic growth rate will rise further this year after 1% in 2025." It added, "Instability in the global energy market stemming from the Middle East conflict is a risk factor for Korea's economy this year, but competitiveness in industries such as semiconductors and fiscal policy will ease that burden."
S&P said, "Over the next three to four years, Korea's economy will grow about 2% on average annually." It added, "Korea's real GDP per capita will grow about 2.1% on average annually from 2026 to 2029, rising from about $36,500 this year to about $44,000 in 2029."
S&P also projected that Korea's general government budget deficit as a share of gross domestic product (GDP) will fall from 1.4% this year to 1.1% next year.