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The rise of Korea’s credit ratings after the Asian currency crisis : A panel analysis of determinants
- The rise of Korea’s credit ratings after the Asian currency crisis
- Huh, In; An, Jiyoun; Yang, Dayoung
- Korea Institute for International Economic Policy
| Title |
The rise of Korea’s credit ratings after the Asian currency crisis
Similar Titles
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|---|---|
| Sub Title | A panel analysis of determinants |
| Material Type | Reports |
| Author(English) |
Huh, In; An, Jiyoun; Yang, Dayoung |
| Publisher |
[Seoul] : Korea Institute for International Economic Policy |
| Date | 2013-10 |
| Journal Title; Vol./Issue | World Economy Update:vol.3(no. 45) |
| Pages | 5 |
| Subject Country | Asia & Pacific(Asia and Pacific) South Korea(Asia and Pacific) |
| Language | English |
| File Type | Link |
| Subject | Economy < Financial Policy |
| Holding | Korea Institute for International Economic Policy |
| License |  |
Abstract
The fluctuations of credit ratings can make a considerable impact on a nation’s finance and economy. Moody’s 9-notch downgrading of the Korea’s credit rating from A1 to B- during the 1997 Asian currency crisis led to a rise in foreign currency loans’ cost, and this placed a heavy burden on the overall macroeconomy. When the credit rate is downgraded, the demand for that country’s bonds is generally decreased as the risk premium for them increases. This in turn causes costs for government debt to rise, thus presenting difficulties for the stable management of national finance.
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