StanChart to advise Vietnam on sovereign credit rating

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Báo Tuổi Trẻ English - 71 month(s) ago 8 readings

StanChart to advise Vietnam on sovereign credit rating

HANOI – Standard Chartered Bank will advise the Vietnam government on improving its sovereign credit rating as the southeast Asian country seeks to attract more foreign investment, according to a statement from the bank on Thursday.

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The Finance Ministry signed a mandate letter with the bank on Thursday, under which the lender would provide insights to rating agencies and to the broader investor community on behalf of the Vietnam government, the bank said in a statement.

"Through improved economic management, the government is seeking to improve its rating to attract greater foreign investment into the country," Standard Chartered Bank said in the statement.

Standard & Poor's currently has a BB- rating for Vietnam, Moody's rates it B1 while Fitch Ratings has assigned a B+ rating for the country, all of which are three or four notches below investment grade. For details, see
Vietnam is seeking to improve its image in the international financial markets as its companies and banks turn more and more to overseas investors for funds at a time when foreign investment into the Southeast Asian nation is declining.

Foreign direct investment inflows into Vietnam in the first two months of this year fell 9 percent from the same period a year ago to US$1 billion, state media has reported.

Several domestic companies and banks have been tapping international markets to borrow funds for expansion.

In early March Vincom Joint Stock Co, Vietnam's leading real estate developer, said it aims to raise up to $300 million through an issue of convertible bonds in international markets.

The latest fund raising effort comes from Hanoi-based VietinBank, Vietnam's largest partly private lender by assets, which began roadshows to sell bonds in Asia, Europe and the United States on Monday.

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