ex. Game, Music, Video, Photography

Moody’s downgrades Vietnam outlook to negative

International credit rating agency Moody’s has kept Vietnam’s Ba3 rating, but changed its outlook to negative after the government delayed a debt repayment.

Ngày đăng: 19 tháng 9, 2021
Cập nhật: 10 tháng 1, 2023
Lượt xem: 327046524
Nguồn: vnexpress

Moody's Investors Service on Wednesday changed the outlook to negative, concluding the review for downgrade that was initiated on October 9, 2019.

"The negative outlook reflects some ongoing risk of payment delays on some of the government's indirect debt obligations, in the absence of more tangible and significant measures to improve the coordination and transparency around debt management within the administration," the agency said in a statement.

But Vietnam’s has kept its Ba3 rating, which is underpinned by strong growth potential and economic diversification, supporting the economy's capacity to absorb shocks, including a prolonged slowdown in global trade, it said.

Moody’s said the rating also reflects its expectation that the government's direct debt burden will decline gradually, from moderately high levels, and debt affordability will improve.

However, while the rapid build-up of a large and diversified manufacturing sector denotes policy effectiveness, Moody's has assessed the country's institutions and governance to be relatively weak, and that administrative deficiencies have been revealed in the delayed debt payments.

And although the financial health of Vietnamese banks has improved over recent years, the banking system remains the chief driver of overall event risks for the sovereign, Moody’s said.

Other credit ratings firms, Fitch and Standards & Poors (S&P) have given Vietnam a BB rating, a notch higher than Moody’s Ba3, but both levels are described as "non-investment grade".

Latest figures released in late October by the Ministry of Finance predicted public debt this year to reach 49.2 percent of GDP, equivalent to around VND3.48 quadrillion ($150.23 billion), and down from 58.4 percent last year.

But National Assembly delegates warned in June that Vietnam might need to borrow around VND700 trillion ($30.22 billion) for three years to service its debts since repayment pressure is rising.


Từ vựng liên quan

Tin tức liên quan

  Ocean Group stock trade restricted for filing delay
business 04/06/2022

Ocean Group stock trade restricted for filing delay

companies | 390486516

The main bourse Ho Chi Minh Stock Exchange (HoSE) has restricted the trading in the stocks of diversified company Ocean Group for delayed submission of earnings reports last year.

  Hanoi
news 04/06/2022

Hanoi's iconic bridge to undergo major evaluation, reparation

news | 390466514

Hanoi's iconic Long Bien Bridge would undergo a complete evaluation in the next two-three months prior to its reparation, according to the Vietnam Railway Authority.

 Party chief re-elected for third term at the helm
news 24/03/2021

Party chief re-elected for third term at the helm

news | 88686575

The 13th Communist Party Central Committee has elected Nguyen Phu Trong for a third term as Vietnam's Party General Secretary.

 Millions of South East Asian jobs may be lost to robots in next two decades
world 09/04/2021

Millions of South East Asian jobs may be lost to robots in next two decades

world | 185516536

56 percent of the salaried workforce in SEA, including Vietnam, fall under the high-risk category.

 Party chief, prime minister re-elected for new Party Central Committee term
news 24/03/2021

Party chief, prime minister re-elected for new Party Central Committee term

news | 88696570

Party chief and State President Nguyen Phu Trong and PM Nguyen Xuan Phuc were re-elected Saturday to the 13th Communist Party Central Committee.

 Masterise, Marriott enter strategic long-term partnership
news 24/03/2021

Masterise, Marriott enter strategic long-term partnership

news | 82996584

Masterise Homes and Marriott International signed a partnership agreement on Jan. 6 with representatives from the U.S. Consulate in Vietnam and American Chamber of Commerce in Vietnam in attendance.

 Mid-caps drag VN-Index back into the red
business 26/03/2021

Mid-caps drag VN-Index back into the red

economy | 92886554

The VN-Index slumped 0.19 percent to 906.19 points Tuesday, with losses outside the VN30 pulling the market down, after two strong gaining sessions.

  China to open border with Hong Kong on Sunday
world 07/01/2023

China to open border with Hong Kong on Sunday

world | 447076497

China will reopen the border with its special administrative region of Hong Kong on Sunday for the first time in three years, as it accelerates the unwinding of stringent Covid rules that have battered its economic growth.

Link Tài Trợ - Sponsored Links

Công Thức Vật Lý
Loading…