Fitch Ratings on Thursday affirmed Vietnam's long-term foreign-currency issuer default rating (IDR) at 'BB' and revised the outlook to positive. Fitch Ratings expects Vietnam's growth at around 6.7 per cent in 2019. - VNA/VNS Photo According to Fitch, the revision of Vietnam's outlook to positive from stable reflects an improving track record of economic management, which is evident in strengthening external buffers from persistent current account surpluses, falling government debt levels, high economic growth rates and stable inflation. The authorities' continued commitment to containing debt levels led to a decline in general government debt to 50.5 per cent of GDP in 2018 from a peak of 53 per cent in 2016, and Fitch expects this ratio to decline further to around 46 per cent by 2020. Vietnam's public debt (general government debt including guarantees) has also been declining, to around 58 per cent of GDP by end-2018 after being close to the ceiling of 65 per cent at … [Read more...] about Fitch Ratings revises Vietnam”s outlook to positive at “BB”
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Fitch revises Việt Nam’s outlook to positive; affirms ‘BB’
Fitch Ratings expects Việt Nam's growth to be around 6.7 per cent in 2019. VNA/VNS Photo HÀ NỘI Fitch Ratings on Thursday affirmed Việt Nam's long-term foreign-currency issuer default rating (IDR) at 'BB' and revised the outlook to positive. According to Fitch, the revision of Việt Nam's outlook to positive from stable reflects an improving track record of economic management, which is evident in strengthening external buffers from persistent current account surpluses, falling government debt levels, high economic growth rates and stable inflation. The authorities' continued commitment to containing debt levels led to a decline in general government debt to 50.5 per cent of GDP in 2018 from a peak of 53 per cent in 2016, and Fitch expects this ratio to decline further to around 46 per cent by 2020. Việt Nam's public debt (general government debt including guarantees) has also been declining, to around 58 per cent of GDP by end-2018 … [Read more...] about Fitch revises Việt Nam’s outlook to positive; affirms ‘BB’
Fitch Ratings revises Việt Nam’s outlook to positive at ‘BB’
Fitch Ratings expects Việt Nam's growth at around 6.7 per cent in 2019. — VNA/VNS Photo Fitch Ratings on Thursday affirmed Viet Nam's long-term foreign-currency issuer default rating (IDR) at 'BB' and revised the outlook to positive. According to Fitch, the revision of Viet Nam's outlook to positive from stable reflects an improving track record of economic management, which is evident in strengthening external buffers from persistent current account surpluses, falling government debt levels, high economic growth rates and stable inflation. The authorities' continued commitment to containing debt levels led to a decline in general government debt to 50.5 per cent of GDP in 2018 from a peak of 53 per cent in 2016, and Fitch expects this ratio to decline further to around 46 per cent by 2020. Viet Nam's public debt (general government debt including guarantees) has also been declining, to around 58 per cent of GDP by end-2018 after being close to the ceiling of 65 per cent … [Read more...] about Fitch Ratings revises Việt Nam’s outlook to positive at ‘BB’
Moody’s ups Vietnam’s credit rating, deems government debt stable
“The upgrade [from B1] to Ba3 is underpinned by strong growth potential, supported by increasingly efficient use of labor and capital in the economy,” the credit ratings agency said in a recent statement. With an average GDP growth rate of over 6 percent over the past decade, Vietnam has climbed up the manufacturing value chain with higher value-added electronic products like smartphones, it said. The country continues to retain its comparative advantage in the export of labor-intensive goods, such as textiles and garments, it added. If strong growth is sustained over time, government debt is likely to be stable and will gradually moderate, Moody’s said. The agency expects that government debt will remain broadly stable around the current levels, at close to 52 percent of GDP in 2017. The debt burden should gradually moderate after 2020, the ratings agency said. Some state-owned enterprises (SOEs) are likely financially weak and the government may need to bear a … [Read more...] about Moody’s ups Vietnam’s credit rating, deems government debt stable
Vietnam has good growth momentum: Fitch forum
Speaking at the event, Sagarika Chandra, senior analyst at Fitch Vietnam, said in May 2018, Fitch had improved Vietnam’s Long-Term Foreign-Currency Issuer Default Rating (IDR) rating from BB- to BB with a stable outlook, thanks to a rise in foreign exchange reserves and strong economic growth. Experts discussed at the Fitch on Vietnam forum Vietnam records a high growth rate in comparison to emerging economies or other BB-ranked nations, she said. The country’s GDP growth was above 6 percent in 2017 and is expected to reach 6.7 percent in 2018 and following years, she noted, adding that this was one of the important factors that helped improve Vietnam's rating. According to the expert, the rating is a result of the country’s maintenance of macroeconomic stability, stronger resilience to external risks and compliance with financial criteria. The Vietnamese government promulgated a flexible exchange rate mechanism in early 2016, and committed to … [Read more...] about Vietnam has good growth momentum: Fitch forum
EVN gains Fitch’s positive credit rating for first time
Illustrative photo (Source: VNA) Hanoi (VNA) – Fitch Ratings (Fitch) gave the Electricity of Vietnam (EVN) a Long-Term Foreign-Currency Issuer Default Rating (IDR) of “BB” with a stable outlook. EVN is the first government-linked non-financial corporate rated by Fitch in Vietnam. The rating aligns with Vietnam’s sovereign rating. The Group is now one step closer to issuing bonds and strengthening its financing capacity, following the Fitch’s rating. According to EVN Vice President Dinh Quang Tri, the positive rating enables EVN to issue international bonds, diversify financing sources and reassure domestic and foreign institutional investors. “This positive rating enables EVN to issue international bonds, diversify our financing sources, and reassure domestic and foreign institutional investors. We are now on a stronger footing to deliver more reliable electricity to Vietnam,” said Dinh Quang Tri, Vice President of EVN. He noted … [Read more...] about EVN gains Fitch’s positive credit rating for first time
Fitch raises rating for Viet Nam
The rating on the nation’s long-term, foreign currency-denominated debt was raised one level to BB, with a stable outlook. — Photo rappler.com Fitch Ratings has upgraded Viet Nam’s sovereign rating based on the country’s rising foreign exchange reserves and strong economic growth. Bloomberg cited Fitch’s announcement on May 15 that shows that the rating on the nation’s long-term, foreign currency-denominated debt was raised one level to BB, with a stable outlook. The upgrade puts Viet Nam at the second-highest speculative grade on a par with Costa Rica. The rating agency also predicted that Viet Nam’s foreign reserves will increase to some US$66 billion by the end of this year from $49 billion in 2017, while the general government debt is likely to decline to below 50 per cent of the gross domestic product (GDP) by 2019. According to Fitch, the country’s economy can expand 6.7 per cent this year. Most economic forecasts since early … [Read more...] about Fitch raises rating for Viet Nam
Fitch upgrades ratings of three Vietnamese banks
Fitch Ratings upgraded the long-term issuer default rating (IDR) of Military Bank to ‘B+’ from ‘B’. — Photo Military Bank Fitch Ratings on Tuesday upgraded the long-term issuer default rating (IDR) of Military Commercial Joint Stock Bank (Military Bank) to ‘B+’ from ‘B’ with a stable outlook. Fitch also upgraded the bank’s viability rating to ‘b+’ from ‘b’. In a report released on Tuesday, the agency also upgraded the viability rating of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) to ‘b’ from ‘b-’. The long-term IDRs of Vietnam Bank for Agriculture and Rural Development (Agribank), Vietinbank and Vietcombank have been affirmed at ‘B+’ with a positive outlook. The IDR of Asia Commercial Joint Stock Bank (ACB) has been affirmed at ‘B’ with a stable … [Read more...] about Fitch upgrades ratings of three Vietnamese banks
Fitch offers positive outlook on Agribank
“The positive rating action takes into account the Vietnamese banking system’s enhanced operating environment, with improved economic policymaking from the authorities promoting macroeconomic stability and predictability,” Fitch noted in a report released on February 27. According to Fitch, the Vietnamese Government will support Agribank when necessary as the bank plays an important role in the country’s banking system and is one of the four largest banks in Vietnam in terms of total assets and networking. The positive outlook also reflects Fitch’s views on Vietnam’s improvement in providing support when necessary. As of December 31, 2017, Agribank had reported a 20% increase in profit at a record VND5.01 trillion (US$220.44 million). The bank’s total assets also hit nearly VND1.2 quadrillion (US$52.8 billion) and its mobilised capital was close to VND1.1 quadrillion (US$48.4 billion). The bank also contributed VND1.2 trillion (US$52.8 million) … [Read more...] about Fitch offers positive outlook on Agribank
Fitch upgrades Military Bank, affirms four banks’ IDRs
Fitch upgrades Military Bank, affirms four banks' IDRs Fitch Ratings in a February 27 report upgraded the long-term issuer default rating (IDR) of Military Bank to “B+” from “B” with a stable outlook and its viability rating to “b+” from “b”. At the same time, it upgraded the viability ratings of Vietcombank and Vietinbank to “b” from “b-”. Photo from mbbank.com.vn At the same time, the long-term IDRs of Agribank, Vietinbank and Vietcombank have been affirmed at “B+” with a positive outlook, while the IDR of ACB has been affirmed at “B” with a stable outlook. According to Fitch, the positive rating action takes into account the Vietnamese banking system’s enhanced operating environment, with improved economic policy-making from authorities promoting macroeconomic stability and predictability. “This has enabled banks to significantly reduce their exposure to legacy problem … [Read more...] about Fitch upgrades Military Bank, affirms four banks’ IDRs