Fitch drops Vietnam

Fitch Ratings said it has downgraded Vietnam's long-term foreign and local currency issuer default ratings to B+ from BB-, respectively, and removed them from rating watch negative.

The outlooks are stable.

At the same time, Fitch said it downgraded the country ceiling to B+ from BB- and affirmed the short-term foreign currency issuer default rating at B.

"Vietnam's sovereign creditworthiness has deteriorated on the back of weaker external finances and rising external financing requirements amid an inconsistent macroeconomic policy framework, a highly dollarized economy and a weak banking system," said Ai Ling Ngiam, director in Fitch's Asia Sovereign team.

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