S&P: Vote to impeach Park does not affect credit rating

The skyline at sunrise in Seoul. South Korea's rating was upgraded to a record high of AA from AA- in October on the back of a stable outlook on the country's steady growth and flexible fiscal and monetary policies.
The skyline at sunrise in Seoul. South Korea's rating was upgraded to a record high of AA from AA- in October on the back of a stable outlook on the country's steady growth and flexible fiscal and monetary policies.PHOTO: AFP

SEOUL • S&P Global Ratings said yesterday that the vote by South Korea's Parliament to impeach President Park Geun Hye does not have a material impact on the country's credit rating.

"Although the political uncertainty could remain a distraction to policymakers for some time, we believe the effective Korean bureaucracy will keep the government running smoothly," the ratings agency said.

Ms Park's duties have been temporarily assumed by the country's Prime Minister until a court rules on whether to uphold or overturn last Friday's impeachment vote.

The country's rating was upgraded to a record high of AA from AA- in October on the back of a stable outlook on the country's steady growth and flexible fiscal and monetary policies.

 
 

"We anticipate that the mature institutions in South Korea will enable politics to revert to normal in due course. Any impact on domestic economic sentiments is likely to be temporary," the ratings agency said.

Prime Minister Hwang Kyo Ahn began getting official briefings from aides of President Park yesterday.

Since assuming presidential powers late last Friday, Mr Hwang has chaired a National Security Council meeting, met the Cabinet twice and visited military headquarters.

He is expected to keep Finance Minister Yoo Il Ho to ensure continuity of policy instead of replacing him with the head of the financial regulator, whom Ms Park last month had designated as his replacement, Yonhap news agency reported.

REUTERS

A version of this article appeared in the print edition of The Straits Times on December 13, 2016, with the headline 'S&P: Vote to impeach Park does not affect credit rating'. Print Edition | Subscribe