Preventing Korea's National Credit Rating Deterioration
ttps://www.facebook.com/pages/Attapeu-One-Love-Original/1775535799339658
Korea Daily , September 27, 2017
Among the three major rating agencies,
the Fitch Rating evaluation team is visiting Korea
on the 25th as the crisis in North Korea gets worse.
The Fitch Evaluation Team meets with officials
from the Ministry of Planning and Finance and the Ministry of Unification
(the department corresponds to the province),
is examining the situation in Korea,
and will announce the results of rating evaluation next month.
A former senior officer of Standard & Poor's (S & P)
expressed concern about the recent situation of the Korean peninsula
at a meeting of the National Federation of Businessmen (Jeun) on 26th,
referring to " uncertainty " .
Last month, Moody's Investors Service raised Korea's " event risk "
by two levels .
International indicators of national default risk continue to be warned.
In the past, Korea's credit rating has been lowered
due to the North Korean nuclear issue.
After North Korea withdrew from the Nuclear Non-Proliferation Treaty (NPT)
in 2003, Moody's lowered its rating outlook for Korea by two steps.
The situation is more serious now than at that time. Mr. Ho Ching, chairman
of the National Federation of Businessmen (all Keidanren),
" There is a sense of tension in the Korean economy
both in terms of security and the economy on coins, " he said.
It is strongly held that the situation surrounding the Korean peninsula
will deteriorate for the time being, unless there is a dramatic change
in the situation.
If the country's credit rating deteriorates,
the national economy will have a red light .
Financial markets in the immediate future will also be destabilized .
Deterioration of Korea's credit rating could be a signal to cause
" Korea Exodus " in the international community .
The North Korean nuclear damage will be the first to appear directly.
It is difficult to predict what will happen
if the credit rating is lowered
while the new administration runs in a market neglect policy.
It is necessary to establish a detailed response strategy
in advance and persuade the international community.
It is not enough for Deputy Prime Minister Kim Dong-young
to visit Moody's and S & P both companies last week in New York.
A large number of foreign funds left: Korea's rating falls
https://japanese.joins.com/article/295/246295.html
October 22, 2018 [c Korea Economic Daily / Chuo Nippo Japanese edition]
Italy's rating has been downgraded in preparation for the regular review
of Moody's Investors Service, Standard & Poor's (S & P)
and Fitch Ratings' three major international rating agencies in November.
South Korea also has withdrawn foreign funds
in the bond market following the stock market,
and the issue of what the rating will be is emerging as a concern.
This is because when foreigners show a recent form,
the ratings are often adjusted downward.
There are over 150 rating companies that have a global record.
There are over 150 rating companies that have a global record.
Of these,
the top three credit rating companies occupy the largest share
of the credit rating market in the US, reaching 95% .
The Hagindar-Hearshman Index (HHI),
which indicates the oligopoly level of the international credit evaluation market,
far exceeds the 1800, which is a criterion for oligopoly markets.
Moody's, S & P, and Fitch are the most influential among
the three major rating companies.
The gap between Moody's and S & P,
The gap between Moody's and S & P,
the two largest US rating agencies, has further widened.
It is because S & P who has to play the role of an investment guide board
can not predict the subprime loan problem firmly.
Later,
S & P has been actively adjusting the ratings of each country to recover
the lost share, but rather frequent adjustments often made it worse.
With regard to the valuation method in question,
With regard to the valuation method in question,
a new standard has been compiled,
led by the Securities Supervisor International Organization (IOSCO).
Looking at the rating evaluation results of each country based
on new standards focusing on oligopoly market improvement,
moral hazard prevention, accuracy and transparency improvement etc.,
the number of downward adjustments was overwhelmingly large.
Korea's rating has also stagnated since S & P raised
it from “AA-” to “AA” in August 2016.
There are differences among the three major rating companies,
There are differences among the three major rating companies,
but the ratings of specific countries are evaluated
by macroeconomic risk ,industrial risk , financial risk , geopolitical risk .
What differs from the conventional evaluation method is that the proportion
of geopolitical risk has been significantly reduced.
This is the reason why we reserve an evaluation of the geopolitical risks
of the Korean Peninsula ( Korean peninsula ) that is changing rapidly,
such as the North Korean missile launch that followed last year
and the North-South Summit Meeting this year.
The macroeconomic and industrial risks are also noticeable
The macroeconomic and industrial risks are also noticeable
at the point where the ratio of relative assessment has increased.
The most comprehensive indicator is the economic growth rate.
The three major rating agencies
simultaneously lowered Korea's growth forecast this year
and next year to less than 3%.
However, the growth rates of other countries are also falling,
and it seems that it is not so disadvantageous
as adjusting Korea's rating downwards.
Financial risk is largely evaluated by foreign currency liquidity
Financial risk is largely evaluated by foreign currency liquidity
and financial soundness.
In particular, countries that have experienced the currency crisis,
such as Korea, emphasize foreign currency liquidity .
There are three ways to estimate the appropriate foreign exchange reserves
of a particular country.
An index approach that calculates foreign exchange demand
as a forecast index from past experience,
an optimization approach that derives and estimates
a foreign exchange reserve high demand function,
and a form equation approach that estimates and calculates
a morphological equation from
a foreign exchange reserve high demand function
It is classified into the law .
The most widely used is the index approach.
The most widely used is the index approach.
This method is also subdivided into the International Monetary Fund (IMF)
standard,
the Greenspan-Gidotti standard,
and the Kaptain standard based on the foreign currency reserves motive.
Even if it is the same country by the method to estimate,
a big difference arises in the scale
of the appropriate foreign exchange reserves, and the debate is incessant.
The appropriate foreign exchange reserves
The appropriate foreign exchange reserves
of the three major rating companies in consideration of the environment
and specificities in which the Korean economy is placed in each
of the three criteria is 360 billion to 380 billion,
which is a midline between the Greenspan Gidotti standard
and the Captain standard Estimated to be dollars .
Today's foreign exchange reserves exceed $ 530 billion
(excluding the constant agreement with Canada)
when combining the funds held directly
with the "First Line" and the "Second Line" held indirectly.
Fiscal soundness is evaluated
by the national debt ratio to gross domestic product (GDP). "
The fiscal balance to which “quantitative entry” (the one that uses first)
is applied does not have to be as black as the private sector to
which “quantitative entry” (the incoming one precedes) is applied.
If the fiscal balance is surplus,
it means that they have collected a lot of taxes
and have not made enough fiscal spending to be returned to the people.
There is no particular problem with rating evaluation
There is no particular problem with rating evaluation
if manageable even if the country's debt increases due to the fiscal deficit.
It is safe if the country's debt ratio to GDP is 100% in developed countries
and 70% in emerging countries to which Korea belongs.
According to international standards, Korea's debt ratio is around 40%,
and it is classified as a financially sound country than any other country.
Although there are bases where macroeconomic risk is an issue among
Although there are bases where macroeconomic risk is an issue among
four major evaluation factors, it is unlikely that the withdrawal of foreign funds,
which has surfaced this month, will lead to a downgrade in Korea's rating.
For this reason, it is necessary to use finance to raise the growth rate.
Especially in an environment where foreigners are likely to withdraw
due to a reversal of interest rates with the United States in terms
of monetary policy,
the role of finance as an economic policy is always important.
BTS members famous for atomic bomb T-shirts are crazy inside the bus Videos leaked! https://twitter.com/i/status/1062852872176451584
Overseas fans seem to be exactly the same
Suddenly overflowing with compliments of English praise. Creepy…
http://www.ekn.kr/news/article.html?no=398456
https://news.v.daum.net/v/20181106030037589
http://www.koreaherald.com/view.php?ud=20181114000854
A song called BTS "run". Members are suffering in waters in the water.
MV release date, March 11, It is the day of the Great East Japan Earthquake.
I can not forgive as a Japanese citizen.
BTS wearing a comfort Woman wear
Dokdo is also doing anti-Japanese act of singing our territory.
Dokdo is also doing anti-Japanese act of singing our territory.
The capital flight started
World stock price / Korea KOSPI
Do not move, government intervention,
Trading suspension, circuit breaker activation,
power off of server,
Koria have a proven track record.
Yuzuru Sato
Korea attacks Japan by combining hands with North Korea and China
Propaganda neglect affects the recreation of the comfort women problem,
the activities of Japanese companies around the world
Possibility of losing in the image strategy at the US jury trial.
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