In the News – N. Korea’s rocket launch highlights S. Korea’s geopolitical risk: Moody’s
SEOUL, April 16 (Yonhap) — North Korea’s long-range rocket launch underscores South Korea’s exposure to geopolitical risks, a leading global credit rating agency said Monday.
Moody’s Investor Service said in its weekly credit outlook report that Friday’s launch showed that the leadership change in Pyongyang following the death of Kim Jong-il late last year has not altered the threat posed by Pyongyang to Seoul’s A1 “positive” sovereign credit rating position.
Moody’s upgraded its outlook to “positive” from “stable” early this month.
The agency said that the fact North Korea reneged so soon after agreeing not to test its missiles is a “credit negative development” for South Korea.
The communist country agreed on Feb. 29 that it will not test missiles and nuclear bombs.
Moody’s, claimed that besides the rocket launch, the North could escalate tensions further this year with a third nuclear weapons test.
The country detonated two nuclear devices in 2006 and 2009 in the face of stiff criticism from the international community.
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