Fitch upgrades Vietnam, debt to BB-

Fitch Ratings said it upgraded Vietnam's long-term foreign and local currency issuer default ratings to BB- from B+.

The outlook was revised to stable from positive.

The issue ratings on Vietnam's senior unsecured foreign and local currency bonds were also upgraded to BB- from B+. The country ceiling was upgraded to BB- from B+ and the short-term foreign currency issuer default rating was affirmed at B.

Fitch said the upgrade reflects improved macroeconomic stability. Vietnam's macroeconomic policy mix has moved toward policies aimed at achieving macroeconomic stability. The State Bank of Vietnam has tightened its monetary stance, contributing to a slowdown in credit growth to a projected 12% in 2014 from 32% in 2010.

Real GDP growth has remained relatively strong at a three-year average of 5.6% against a BB range median of 3.7%. Inflation moderated to 3.2% as of October 2014, down from an average of 6.6% in 2013. High savings and investment rates compared with peers support growth prospects.

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