South-North Korea summit eases some tension, but risks remain - Fitch Ratings

Fitch Ratings is out with comments on the South-North Korea summit meeting, cooling expectations of a drastic wrap-up to the Korea scenario.

Key highlights

Summit meeting does not eliminate risks associated with the military stand-off.

Lengthy, unpredictable normalization of relations lies ahead.

South Korea's sovereign balance sheet at risk with stand-off wrap-up.

The possibility of reunification carries long-term costs associated.

Unclear whether summit signals a permanent, structural easing of tensions.

Hard to predict political outcome over the coming months.

Tensions could escalate very quickly if the US decides that diplomacy is not achieving its goals.