No impact on South Korea ratings from North -Fitch

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SEOUL, May 26 - Fitch has no plan to change its sovereign ratings on South Korea despite increased tensions this week after news of North Korea's nuclear and missile tests, a senior official at the ratings agency told Reuters on Tuesday.

But Fitch is maintaining a close eye on the international response because of a possible increase in the financial burden on the South over the long term, James McCormack, head of Fitch's Asia-Pacific sovereign ratings, said in an email message.

"Developments over the last few days have not altered our views of (South) Korean sovereign credit risk. The nuclear test and missile launches confirmed facts already known about North Korea - that it has nuclear capabilities and a missile programme," he said.

"Fitch would take interest in the prospect of additional sanctions being imposed on North Korea, as that could contribute to further economic isolation of the country, possibly resulting in an eventual increase in unification costs," he added.

Fitch has a negative outlook on its A-plus rating attached to South Korea but told Reuters last week the case for a near-term downgrade had eased.