Korea to Jump to Grade A

International rating company Standard & Poor`s (S&P) is likely to raise the sovereign credit rating of Korea to A within this year, as it allegedly plans to move up the field inspection on Korean economy, which was scheduled in September.

Deputy Prime Minister and the Minister of Finance and Economy Jeon Yun-churl, who presents at annual meeting of the Asia Development Bank (ADB) in Shanghai, China, agreed with the officials from S&P including John Chambers deputy head of Standard & Poor’s sovereign group to have a discussion for advancing the annual meeting.

MOFE announced that Deputy Prime Minister Jeon conveyed the stance of government toward Hynix to S&P, saying, `creditors are preparing measures, and the government wants quick disposal of the problem`, and S&P answered positively.

The rating agency usually rearrange the ratings 2 or 3 months after spot inspection that it is possible that S&P upgrades the rating of Korea to A level. S&P had already raised the rating of Korea to BBB+ in November last year.

Deputy Prime Minister Jeon had a discussion on pending issues with Thomas Byrne head of sovereign ratings team in Moody’s, which upgraded Korea’s rating to A in March this year.

Team head Byrne said, “the evaluation of international financial society is applied to the sovereign rating of Korea, and another raise of rating is possible when continual restructuring is made. But you should avoid loosening the structural reformation due to the political calendar. ”

Rae-Jeong Park ecopark@donga.com