S&P revises Vietnam's outlook to stable from negative

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Vietnam's rating outlook was revised to stable by Standard & Poor's, which cited the country's liquidity and external debt levels.

The outlook on the foreign-currency and local-currency long-term ratings is now stable from negative, S&P said in a statement today. It affirmed Vietnam's BB- long-term and B short-term sovereign credit ratings.

"Vietnam's external indicators, reflecting moderate liquidity and a modest net narrow external debt level, support its sovereign creditworthiness," S&P said in the statement.

The ratings "reflect the country's low-income economy, its weak fiscal position, a developing monetary and financial framework, and the possibility that its evolving policy framework could weaken sovereign risk indicators," it said.

Vietnam's economy has been buffeted this year by a credit crunch after the central bank pushed up interest rates last year to fight the fastest inflation in Asia. Gross domestic product grew 4 percent in the first quarter, the slowest since 2009, and the pace of expansion for the full year may be in a range of 5.2 percent to 5.5 percent, Deputy Minister of Planning & Investment Cao Viet Sinh, said in an interview this week.

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