Moody's turns outlook of Mong Duong Finance to negative
The negative outlook on the rating mirrors the negative outlook on Vietnam's sovereign rating, given the government's commitment to MDP's power project.
The negative outlook on the rating mirrors the negative outlook on Vietnam's sovereign rating, given the government's commitment to MDP's power project.
Moody's rating actions on the 18 banks are driven purely by the sovereign rating action, and do not reflect a weakening of the banks' standalone financial profiles.
The finance ministry reiterated that the government is always serious about meeting commitments to timely debt payments with development partners and international financial institutions.
The negative outlook reflects some ongoing risk of payment delays on some of the government's indirect debt obligations.
Vietnamese banks belong to a handful of examples that combine well two factors of high growth of profit and long-term stability.
Vietnam's economic expansion has been driven by strong FDI, mostly into the manufacturing sector, and steady export growth.