This report does not constitute a rating action. Overview Credit context and assumptions Base-case expectations Supportive institutional framework from strong and prudent central government governance guidelines. Solid revenue generation and carefully managed spending will help restore budget surpluses. High wealth level and solid growth prospects as the economic center of Korea. Debt burden to slowly increase to fund key initiatives, including Seoul Vision 2030 and metro network. Prudent financial management, as indicated by a long record of strong financial profiles. Large liquidity buffer from potential budgetary surpluses and mild new borrowings. Sovereign rating on Korea constrains the rating. Support will come from Korea's strong export competitiveness and a consumption recovery as stimulus policies take effect. This will help boost revenue
