S&P says South impeachment does not affect credit fundamentals

People set off fireworks on a road leading to the Presidential Blue House during a protest calling for South Korean President Park Geun-hye to step down in central Seoul

SEOUL (Reuters) – S&P Global Ratings said on Monday that Friday’s vote by South Korea’s parliament to impeach President Park Geun-hye does not have a material impact on the country’s credit rating.

“Although the political uncertainty could remain a distraction to policymakers for some time, we believe the effective Korean bureaucracy will keep the government running smoothly,” the ratings agency said.

Park’s duties have been temporarily assumed by the country’s prime minister until a court rules on whether to uphold or overturn the impeachment vote.

(Reporting by Tony Munroe; Editing by Simon Cameron-Moore)