Fitch upgrades S. Korea credit rating to AA-

SEOUL (AFP) - Ratings agency Fitch on Thursday upgraded South Korea's credit rating, citing a strong macroeconomic policy framework and continued economic and financial stability.

South Korea's long-term foreign-currency issuer default rating was raised to AA- from A+, Fitch said, adding the outlook is stable.

The agency said it took into account strong structural fundamentals including an income level and social and political stability that "are not out of line with the AA rating range," although risks associated with North Korea remain relevant.

It said South Korea should be able to avoid falling into recession despite a significant slowdown in external demand, with its real GDP forecast to grow 2.5 per cent this year and 3.6 per cent in 2013.