Posted November. 11, 2008 09:21,
Fitch announced yesterday that it affirmed Koreas rating for long-term foreign currency issuer default at A+ but downgraded its rating outlook from stable to negative.
James McCormack, Fitch managing director for Asia, said the deleveraging of the banking system could contribute to erosion of the sovereigns external credit strengths, especially if accompanied by central bank intervention in the currency market to protect the won.
Fitch also downgraded its outlook from stable to negative for three state-run corporations: Korea Expressway Corp. ("A+"); Korea Land Corp ("A+"); and Korea District Heating Corp. ("A+").
While reviewing 17 emerging economies whose credit ratings range from BBB to A+, Fitch lowered its rating outlooks for seven economies and downgraded ratings for four. Among Asias six emerging economies, China, Taiwan, Thailand and India had their ratings affirmed.