The Ministry of Finance is working to establish a mechanism for regular and ongoing dialogue with international credit rating agencies, including Fitch, Moody’s and S&P. (Illustrative image: VNA)

Hanoi – Fitch Ratings has upgraded Vietnam’s senior secured long-term debt instruments from BB+ to BBB-, according to the Ministry of Finance.

In a statement released on January 22, the ministry said the rating for Vietnam’s secured long-term debt was raised to BBB-, equivalent to investment grade, one notch higher than the country’s long-term foreign-currency rating on unsecured debt, which remains at BB+. The upgrade followed Fitch’s review under its revised Sovereign Rating Criteria issued in last September.

The decision reflects its expectations regarding recovery prospects on unsecured sovereign bonds, combined with additional recovery benefits arising from the secured or guaranteed portions of the debt instruments.

The rating agency stressed that the move does not alter Vietnam’s sovereign credit rating, which was affirmed at BB+ with a stable outlook in June last year. Nevertheless, the upgrade is seen as an important step in reinforcing the standing and credibility of Vietnam’s debt instruments in international capital markets.

According to the ministry, it is working to establish a mechanism for regular and ongoing dialogue with international credit rating agencies, including Fitch, Moody’s and S&P. This engagement goes beyond the provision of requested data, involving close coordination with ministries and agencies to proactively explain and demonstrate the country’s institutional strengths, macroeconomic stability and growth potential. The recent upgrade by Fitch was also attributed to timely information sharing and close cooperation between the ministry and the rating agency.

The finance body said it will continue to work closely with Fitch and other credit rating agencies, as well as international organisations, to ensure comprehensive and up-to-date assessments of Vietnam’s credit profile.