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Fitch Downgrades Korea’s Rating Outlook to ‘Negative’

Fitch Downgrades Korea’s Rating Outlook to ‘Negative’

Posted November. 11, 2008 09:21,   


Fitch announced yesterday that it affirmed Korea’s 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 sovereign’s 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 Asia’s six emerging economies, China, Taiwan, Thailand and India had their ratings affirmed.