Korea's credit rating likely to climb

Overseas financial institutions forecast that Korea's nation's credit rating is likely to be raised soon.

Financial sources say that Germany's Deutsche Bank said in its report on developing countries market that Korea's rating is appropriate at BBB+ based on its analysis.

Deutsche Bank pointed out that Korea has a proper structure of industrial infrastructure, per-capita gross domestic product that exceeds the average of developing countries and high export competitiveness, although the nation's growth rates for exports and gross domestic product have been slowing down.

Also, the German bank said that the spread of Korean global bonds, which had been rising due to uncertainties of oil prices, slowdown in global demand and increasing corporate bankruptcy, is relatively stable now thanks to stability in macroeconomic conditions.

Salomon Smith Barney of the United States also predicted in its forecast about Korea's crediting rating that Korea's sovereign rating would be lifted before March next year.

The institution said that such an evaluation is based on the will of the Korean government for restructuring, increased foreign exchange reserve and reduction in short-term debt compared with the pre-crisis level and strengthened capability of banks for fund raising.

However, Salomon Smith Barney noted that Moody's Investor Service might upgrade Korea's rating to positive in forecast.