Hanoi (VNA) – Moody's Investors Service(Moody's) has maintained theGovernment of Vietnam's long-term issuer and senior unsecured ratings at Ba3and changed the outlook to positive from negative.
The drivers of the positive outlook include signs ofimprovements in fiscal strength and potential improvements in economic strengththat may strengthen Vietnam's credit profile over time. Sustained fiscalconsolidation has led to improvements in fiscal and debt metrics, which Moody'sexpects to be only briefly interrupted by the pandemic.
Moreover, Vietnam's economic strength may benefit fromglobal shifts in production, trade and consumption following the coronaviruspandemic. Over time, indications of higher fiscaland economic strength may point to improving policy effectiveness, also puttingupward pressure on Vietnam's credit profile.
The affirmation of the Ba3 rating is underpinned by ongoingcredit strengths and weaknesses, including a large, diversified economy withhigh growth potential offering resilience to shocks, and increasing capacity inthe domestic financial system to finance government borrowing at low costs.
Vietnam's local- and foreign-currency ceilings are unchangedat Baa3 and Ba2, respectively.
In its evaluation, Moody’s also considered other factorssuch as the environment, society, air pollution, extreme weather conditions, whichit held that Vietnam should give greater attention to.
Moody’s raising of two positions inoutlook prospect is an unprecedented move in its ranking globally since the start of the COVID-19 pandemic, which is a considerable recognition forVietnam./.
The drivers of the positive outlook include signs ofimprovements in fiscal strength and potential improvements in economic strengththat may strengthen Vietnam's credit profile over time. Sustained fiscalconsolidation has led to improvements in fiscal and debt metrics, which Moody'sexpects to be only briefly interrupted by the pandemic.
Moreover, Vietnam's economic strength may benefit fromglobal shifts in production, trade and consumption following the coronaviruspandemic. Over time, indications of higher fiscaland economic strength may point to improving policy effectiveness, also puttingupward pressure on Vietnam's credit profile.
The affirmation of the Ba3 rating is underpinned by ongoingcredit strengths and weaknesses, including a large, diversified economy withhigh growth potential offering resilience to shocks, and increasing capacity inthe domestic financial system to finance government borrowing at low costs.
Vietnam's local- and foreign-currency ceilings are unchangedat Baa3 and Ba2, respectively.
In its evaluation, Moody’s also considered other factorssuch as the environment, society, air pollution, extreme weather conditions, whichit held that Vietnam should give greater attention to.
Moody’s raising of two positions inoutlook prospect is an unprecedented move in its ranking globally since the start of the COVID-19 pandemic, which is a considerable recognition forVietnam./.
VNA
