S&P Affirms Ratings on Vietnam, Outlook Negative
Standard & Poor’s Ratings Services has placed the foreign currency and local currency long-term sovereign credit ratings of Vietnam at BB and BB+, respectively, with a negative outlook.
The U.S. global rating agency affirmed the ‘B’ short-term credit ratings on Vietnam while the country’s transfer and convertibility (T&C) assessment on Vietnam remains at ‘BB+’.
These ratings expressed an increased vulnerability of the economy to severe shocks that could significantly augment the public financial burden. It also reflected the risks to financial stability in Vietnam.
The outlook will be reverted to stable providing that the economy will return to a sustainable growth and the financial fallout of the rapid growth of the banking sector will be confined to a small number of systemically unimportant institutions.
The Hanoi-based Chief Economist Martin Rama of the World Bank earlier said Vietnam’s economy had experienced a stop-and-go growth from Q1 2007 to end-March this year.
Martin Rama urged Vietnamese government to provide more explicit information on its new policies to help the national economy gradually escape from such an unsustainable growth. (S&P Press Release)
Vietnamese
