Moody’s has lifted the long-term local and foreign-currency deposit and issuer ratings of the Bank for Foreign Trade of Vietnam (Vietcombank). (Photo: VNA)Hanoi (VNA) – Moody’s Investors Service has takenrating actions on 14 Vietnamese commercial banks in its latest report issued onAugust 14.
Moody’s has lifted the long-term local andforeign-currency deposit and issuer ratings of the Bank for Foreign Trade of Vietnam(Vietcombank), Bank for Investment and Development of Vietnam (BIDV), andVietnam Bank for Industry and Trade (VietinBank).
The firm has also upgraded the long-termcounterparty risk ratings (CRR) and counterparty risk assessments (CRAs) ofVietinBank and BIDV, and affirmed those of Vietcombank.
The firm has alsoupgraded the long-term foreign-currency deposit ratings of Asia Commercial Bank(ACB), Military Bank (Military Bank), and Vietnam Technological and CommercialBank (Techcombank). All other ratings of these three banks stayed the same.
At the same time, Moody'shas upgraded the long-term local and foreign-currency bank deposit and issuerratings of five banks, including An Binh Bank (ABB), Lien Viet Post Bank (LienViet), Tien Phong Bank (TPBank), Vietnam International Bank (VIB), and VietnamProsperity Bank (VP Bank) while all other ratings of them remained unchanged.
Moody's has also upgradedthe long-term CRR and CRA of Saigon - Hanoi Bank (SHB), Ho Chi Minh CityDevelopment Bank (HDBank), and Orient Bank (OCB) while all other ratings of thethree banks were affirmed.
Additionally, the creditrating provider has changed the outlook for the local currency deposit andlocal and foreign-currency issuer ratings of eight banks, namely Vietcombank,BIDV, VietinBank, ABB, Lien Viet, TPBank, VIB and VP Bank, from positive tostable.
The rating actions followMoody's upgrade of Vietnam's sovereign rating from B1 to Ba3, and change in theoutlook for the sovereign's rating from positive to stable on August 10.
The upgrade is underpinned by stronggrowth potential, supported by increasingly efficient use of labour and capitalin the economy. A long average maturity of government debt and a diminishingreliance on foreign-currency debt point to a stable and gradually moderatinggovernment debt burden, particularly if strong growth is sustained over time.
The upgrade also reflects improvements in the health of the banking sector thatMoody's expects to be maintained, albeit from relatively weak levels. –VNA
VNA
