Moody’s Investors Service, the credit rating agency, has downgraded Vietnam’s sovereign debt, warning that shortcomings in economic policy were leading to a heightened risk of a balance of payments crisis.
The rating was cut on Wednesday by one notch, changing the debt assessment to “speculative and subject to high credit risk”.
The move is likely to increase the cost of government and private borrowing at a time when global investor sentiment remains fragile amid sovereign debt concerns in the eurozone.
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