S&P lowers Seoul local currency rating

Standard & Poor's said it lowered Seoul Metropolitan Government's local currency long-term issuer credit rating to A from A+.

At the same time, S&P said it affirmed its A foreign currency long-term issuer credit rating, A-1 local and foreign currency short-term issuer ratings and A senior unsecured debt rating on Seoul Metropolitan.

The outlook is stable.

Seoul Metropolitan's local currency rating has been lowered to the same level as the foreign currency rating on the Republic of Korea. S&P said it believes there is a fairly high correlation in economic and financial performance between the Republic of Korea and Seoul Metropolitan.

The long-term ratings and stable outlook on Seoul Metropolitan are supported by sound fiscal performance, moderate levels of debt and strong ties to the central government. The ratings are constrained by the unprofitable and heavily indebted subway subsidiaries, S&P said.

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