Moody’s upgrades South Korea

South Korea’s credit rating was yesterday upgraded, as the government successfully fulfilled its commitment to slash its debt. Moody’s lifted government bond ratings to A1 with a stable outlook from A2, the first increase since July 2007. “The change has been prompted by Korea’s demonstration of an exceptional level of economic resilience to the global crisis, while containing the government’s budget deficit,” said Tom Byrne, a Moody’s senior vice president. It noted Korea’s hefty foreign reserves and predicted the current account will remain in surplus this year.