BizLIVE - Moody’s has affirmed the long-term and short-term deposit and, issuer and senior debt ratings of eight banks in Vietnam.
Moody's Affirms Ratings of 8 Vietnamese Banks
The headquarters of the State Bank of Vietnam in Hanoi. Photo: Minh Tuan
Moody's Investors Service has announced it has kept the long-term and short-term deposit and, where applicable, issuer and senior debt ratings of eight banks in Vietnam unchanged.
At the same time, Moody's has revised the outlooks for the local currency deposit and local and foreign currency issuer ratings of these banks to positive from stable.
The rated banks include Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Bank for Industry and Trade (VietinBank), Bank for Investment and Development of Vietnam (BIDV), An Binh Commercial Joint Stock Bank (ABBank), Asia Commercial Bank (ACB), Military Commercial Joint Stock Bank (MBBank), Vietnam International Bank (VIB), and Vietnam Technological and Commercial Bank (Techcombank).
The rating actions follow Moody's affirmation of Vietnam's B1 sovereign rating, and change in the outlook for the sovereign's rating to positive from stable on April 28 this year.
The baseline credit assessments (BCAs), adjusted BCAs and counterparty risk assessments assigned to the eight banks stated above are unaffected by today's rating actions.
Moody's revision of the outlook on Vietnam's B1 sovereign rating to positive from stable signals the government's potentially higher capacity to provide such support to the banks, the agency said in a statement on May 3.
The B2 foreign currency deposit ratings of the eight Vietnamese banks were affirmed with stable outlooks, because these ratings are constrained by the B2 foreign currency deposit ceiling for Vietnam.
If the B1 rating on the Vietnam government is upgraded, Moody's will likely upgrade the long-term ratings of the eight Vietnamese banks stated above, by incorporating additional notches of public support uplift.
The long-term ratings of the eight Vietnamese banks could be downgraded if there is a severe deterioration in their credit fundamentals, and/or Moody's assesses that government support for the banks has weakened.
The rating agency also said it has upgraded the long-term deposit and issuer ratings of Vietnam Prosperity Joint Stock Commercial Bank (VPBank) to B2 from B3. The bank’s baseline credit assessment (BCA) and adjusted BCA has also been upgraded to b3 from caa1.
The outlook on the long-term ratings remains stable.

TUAN MINH