...SINGAPORE (Standard & Poor's) Jan. 6, 2016--Standard & Poor's Ratings Services said the Democratic People's Republic of Korea's (North Korea; unrated) claim of having tested a hydrogen bomb has limited impact on the sovereign credit rating on the Republic of Korea (South Korea; ##-/Stable/A-1+). We expect any negative impact on financial markets and economic activities to be temporary. Geopolitical and security risks are also unlikely to rise beyond levels that we currently assess as part of the factors supporting the South Korean sovereign ratings. The latest nuclear test does not materially alter the near-term security threats that South Korea faces. Despite the number of nuclear tests that North Korea had carried out over the years, external security experts see little likelihood that the country can produce a nuclear weapon in the foreseeable future. More importantly, we believe that launching a major attack (nuclear or otherwise) against South Korea could seriously damage North Korea's...
