Fitch Cuts Vietnam Rating on Borrowing, ‘Weak’ Banks

Vietnam’s debt rating was lowered by Fitch Ratings on concern about the nation’s “inconsistent” economic policy, foreign-exchange reserves and banking system.

The country’s long-term foreign and local-currency ratings were cut to B+ from BB-, with a stable outlook, Fitch said in a statement today. The new rating is four steps below investment grade and contrasts with improving creditworthiness this year among emerging markets from Indonesia to Ukraine.