Credit rating agency "Korea's sovereign credit rating remains unchanged"...Long-term anxiety is "concern".

[Anchor]
International credit rating agencies said there has been no change in Korea's national credit rating yet.

However, they are concerned about the prolonged political unrest.

We don't know when international credit rating agencies will evaluate next.

Lee Seung-eun reports.

[Reporter]
Credit default swaps, the CDS premium, are insurance fees for government bonds and are among the indicators of state default risk.

Korea's five-year foreign exchange bond CDS premium, which had maintained 32 to 33bp, jumped to the 36bp level during the day immediately after martial law was declared on the night of the 3rd.

It came down due to the lifting of martial law, but has recently maintained the 36bp range.

It is stable considering that it has jumped to the 39bp level without major variables in July, but slightly higher than before martial law.

The number one government response amid political instability is to prevent a decline in Korea's external credibility, especially a decline in the national credit rating.

A fall in the sovereign credit rating could send government and corporate financing costs soaring, sending shockwaves through the economy, including exchange rates and prices.

The government and the Bank of Korea have also contacted foreign investors, analysts and three major international credit rating agencies, following finance ministers from major countries, to stress that our economic system is operating normally.

[Choi Sang-mok / Deputy Prime Minister and Minister of Strategy and Finance: They asked for good management of these uncertain situations while maintaining trust in the Korean economy]

[Park Soo-young / National Assemblyman (Power of the People): There's no saying that you're going to lower your credit rating right now, right?]

[Choi Sang-mok / Deputy Prime Minister and Minister of Strategy and Finance: Of course, there is no such thing.]

However, all three major credit rating agencies are warning that a prolonged political crisis could negatively impact the country's credit rating.

Fitch maintained Korea's national rating and outlook in March, S&P in April and Moody's in May as before.

It's on the same level as France.

Given that it mainly goes into revaluation every one to two years, reviews may begin early next year, but there is no fixed cycle.

The S&P said the operation of the national system was the most important part of its evaluation, noting that market stabilization measures were quickly taken immediately after martial law was declared.

Lee Chang-yong, governor of the Bank of Korea, also stressed that the government and the ruling and opposition parties should cooperate to manage the situation stably, apart from politics.

I'm YTN's Lee Seung Eun.

Video editing Lee Eun-kyung
Design Im Sat Star