Fitch cuts Vietnam view to negative

Fitch Ratings said it affirmed Vietnam's long-term foreign-currency issuer default rating at BB-, long-term local-currency issuer default rating at BB, short-term foreign-currency issuer default rating at B and country ceiling at BB-.

The outlook was revised to negative from stable.

Inflation is a serious concern for Vietnam, with its Consumer Price Index rising by more than 25% in May this year, Fitch said, adding that it believes the policy response has been both too slow.

The agency also said that accelerating inflation could pose risks to the stability of the banking system, which is highly dollarized by regional standards.

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