S&P upgrades Seoul

S&P said it raised the long-term issuer credit rating on Seoul Metropolitan Government to AA from AA-.

The agency also said it affirmed the company’s A-1+ short-term rating.

The outlook is stable.

The upgrades reflect the upward revision of the government’s stand-alone credit profile based on improving budgetary flexibility and performance, S&P said.

The higher rating also follows the recent upgrade of the Republic of Korea to AA from AA-, the agency said.

The ratings reflect the government’s strong economy as the capital of Korea, very strong budgetary performance, strong budgetary flexibility and financial management, and exceptional liquidity, S&P said.

Other strengths include Seoul's low debt burden and very low contingent liabilities, the agency said.

Korea's evolving, but balanced, institutional framework partially offsets these strengths, S&P said.

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