A.M. Best has revised the issuer credit rating (ICR) outlook to positive from stable and affirmed the financial strength rating (FSR) of B++ (Good) and the ICR of “bbb” of Vietnam National Reinsurance Corporation (VINARE) (Vietnam). The outlook for the FSR remains stable.

In Vietnam, the on-going macroeconomic stability and reform gains continue in areas such as inflation, high growth rates and integration into the global economy. Foreign ownership has been showing an increasing trend, and privatization has been promoted in recent years. Banking conditions and liquidity conditions in Vietnam also have improved.

A.M. Best recognizes that Vietnam has shown steady improvement in economic risk and financial system risk. The positive rating outlook for VINARE reflects steady improvement in Vietnam’s country risk. Since the majority of VINARE’s business is generated from the domestic Vietnam market, this steady improvement may provide a more favorable operating environment for the company’s business development, and gradually improve its balance sheet strength and operating performance leading to a better capability of fulfilling its policyholder obligations.