Korea's superior track record of steady economic growth has generated a prosperous economy, greater fiscal and monetary flexibility, and continual improvements in external metrics. We are therefore raising our long-term sovereign credit rating on Korea to 'AA' from 'AA-'. At the same time, we are affirming the short-term rating at 'A-1+'. The stable outlook on the long-term rating reflects our expectations that geopolitical risk on the Korean peninsula will not escalate beyond what we have observed since the last DPRK leadership transition in 2011. On Aug. 8, 2016, S&P Global Ratings raised its long-term sovereign credit rating on the Republic of Korea to 'AA' from 'AA-'. We also affirmed the short-term rating on Korea at 'A-1+'. The outlook on the
