S&P lifts Vietnam to stable

Standard & Poor's said it revised the outlook on the Socialist Republic of Vietnam to stable from negative and affirmed the BB- long-term and B short-term sovereign credit ratings.

The agency also said it raised the Asean scale long-term rating on Vietnam to axBB+ from axBB. The Asean scale short-term rating remains unchanged at axB.

The outlook revision reflects the reduction in the risks to macroeconomic and financial stability in Vietnam, S&P said.

Key indicators such as credit growth, the level of foreign-exchange reserves and domestic-currency interest rates have improved over the past 18 months, the agency said.

S&P said it expects Vietnam to maintain these improvements as the government has expressed its intention to keep price stability high on its policy priorities.

The ratings reflect the country's low-income economy, its weak fiscal position and the possibility that its evolving policy framework could weaken sovereign risk indicators, the agency said.

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