...Positive Momentum for Banks in Vietnam and Mongolia, Headwinds in Sri Lanka Improving operating conditions in Vietnam and Mongolia should continue to strengthen the intrinsic credit profiles of rated banks. Fitch Ratings upgraded the IDRs of two Mongolian banks in July 2018 and four Vietnam banks in February and May 2018. Our assessment of the operating environment in those three jurisdictions are the weakest amongst our covered markets in APAC: `b+'/positive for Vietnam, `b+'/negative Sri Lanka and `b'/stable Mongolia. Fitch expects the economic environments in Vietnam and Mongolia will remain supported by stable growth outlooks, declining sovereign debt as a proportion of GDP, and rising foreign- exchange reserves. In contrast, Sri Lankan banks face challenges due to slower economic growth and pressure on disposable incomes. Sri Lanka and Mongolia are currently under IMF arrangements, while Vietnam's last IMF facility was in 2001. We also see progress towards more robust regulatory frameworks...
