Policies, foreign investment help boost credit rating to ‘positive’ (19/03)
06/08/2010 - 197 Lượt xem
Viet Nam’s credit outlook was increased from stable to positive by Moody’s Investment Services on Thursday, citing ongoing foreign capital inflow and pro-business Government policies.
The change in outlook was prompted by continued success in the country’s externally oriented development policies and overall stability in the Government’s fiscal position even as the authorities deliberately run budget deficits to finance investment and to boost the level of national income Moody’s Vice President Tom Byrne was quoted in a press release.
Moody’s rates foreign-currency government bonds at "Ba3," three levels below investment grade, with a positive outlook. Viet Nam’s foreign-currency country ceiling for bonds and notes remains at "Ba2," with a stable outlook.
The country’s foreign-currency ceiling for deposits was upgraded from stable to positive, which was the same for it local currency bond ceiling at "Ba1".
These upgrades were based on Viet Nam’s entry into the World Trade Organisation which continues to attract foreign investors.
Moody’s, though, did issue warnings regarding the country’s fiscal and monetary discipline.
Macroeconomic stability could be threatened by an unabated surge in capital inflows due to loose monetary control or an inappropriate exchange rate policy, and fiscal sustainability could be challenged by excessive increases in expenditure or a sharp fall in oil prices and petroleum sector revenues, according to Byrne.
Source: Vietnam News
