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Sovereign ratings wrap: Fitch keeps UK on negative watch; S&P affirms Vietnam

S&P Global Market Intelligence presents a summary of ratings actions on sovereigns and other key territories from Oct. 14 to Oct. 20.

EUROPE

* Fitch Ratings maintained the U.K.'s AA long-term foreign- and local-currency issuer default ratings on Rating Watch Negative, citing uncertainty surrounding the fate in Parliament of Prime Minister Boris Johnson's revised Brexit deal with the European Union. The rating agency said the action takes into account a "reduced but not been eliminated" possibility of a no-deal Brexit, adding that the Rating Watch will be resolved once there is more certainty over the U.K.'s planned departure from the EU. Fitch affirmed the country's short-term ratings at F1+.

* Fitch affirmed San Marino's foreign-currency issuer default ratings at BBB-/F3, with a negative outlook, citing the country's high per capita GDP, a stable political system and a potential large net external creditor position and trade surplus, offset by a weak banking sector, ineffective policy changes and limited administrative capacity. Fitch added that San Marino's reliance on Italy, limited economic diversification, data quality issues and weak GDP growth also weigh on the ratings.

ASIA

* S&P Global Ratings affirmed Vietnam's long- and short-term sovereign credit ratings at BB/B, with a stable outlook, citing little to no impact to creditors of administrative shortcomings that led to the finance ministry incorrectly announcing a delay in payment of a government-guaranteed debt obligation. The agency said the rating also reflects Vietnam's robust economic growth, development outcomes and foreign direct investment inflows, offset by impaired transparency in its decision-making system, a lower-middle income economy, weaknesses in the banking sector, elevated debt stock and limited structural fiscal reform.

MIDDLE EAST AND AFRICA

* S&P affirmed Oman's sovereign credit ratings at BB/B, citing recent government actions that could accelerate the country's fiscal consolidation through spending cuts and improved revenue collection. The outlook is negative, reflecting the agency's view that the planned fiscal measures could still fall short of stemming a deterioration in the government's balance sheet and of curbing rising debt.

* Capital Intelligence Ratings affirmed Iran's long- and short-term foreign- and local-currency ratings at B/B, with a stable outlook.

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