[THE INVESTOR] S&P Global Ratings said on Aug. 9 it has raised the credit ratings for two state-run policy lenders, Korea Development Bank and Export-Import Bank of Korea, to “AA” from “AA-”.

The global credit rating agency also upped its ratings on four financial public companies and five commercial banks by one notch.

The upgrades reflects South Korea’s sovereign rating, which was upgraded from “AA-” to “AA” with a stable outlook on Aug. 8, the US-based agency said in a press release. 

The agency cited the country’s steady economic performance, sound fiscal position and flexible fiscal monetary policies for raising it to its third-highest rating.

The long-term issuer credit ratings and that of senior unsecure bonds of Industrial Bank of Korea were revised up to “AA-” from “A+”. NongHyup Bank was assigned “A+” from the previous “A”.

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Other commercial banks that received upgraded ratings include Kookmin Bank and Shinhan Bank which have now obtained “A+” as well as DGB Financial Group and Busan Bank which were lifted to “A-” from “BBB+.”

The outlook is stable for all four public financial companies and five commercial banks.

By Park Han-na (hnpark@heraldcorp.com">hnpark@heraldcorp.com)