Vietnamese Bonds Decline After Moody’s Cuts Rating; Dong Weakens
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Vietnam’s government bonds dropped, pushing the three-year yield to a two-month high, after Moody’s Investors Service cut the country’s credit rating for the first time since 2010. The dong weakened.
The foreign- and local-currency government debt ratings were lowered to B2 from B1, with a stable outlook, Moody’s said in a statement today, citing lower growth prospects and risks to the state balance sheet from “weaknesses” in the banking system. That is five steps below investment grade and the same as Egypt and Cambodia.