8 Vietnamese banks have their credit ratings upgraded by Moody's

The prestigious credit rating agency Moody's has recently upgraded the issuer and long-term local and foreign currency deposit ratings of eight Vietnamese banks by one notch, as well as upgrading the counterparty risk ratings in local and foreign currencies and counterparty risk assessment of seven banks by one notch.

The 12 banks whose rankings were updated this time include: Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Tien Phong Commercial Joint Stock Bank (TPBank), Vietnam Bank for Agriculture and Rural Development (Agribank), Vietnam International Bank (VIB), Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank), Orient Commercial Joint Stock Bank (OCB), Saigon - Hanoi Commercial Joint Stock Bank ( SHB ), Southeast Asia Commercial Joint Stock Bank (SeABank), Vietnam Maritime Commercial Joint Stock Bank (MSB) and An Binh Commercial Joint Stock Bank (ABBank).

Economy - 8 Vietnamese banks have their credit ratings upgraded by Moody's — Moody's, one of the three most prestigious credit rating organizations in the world .

Of which, 8 banks have had their issuer and long-term domestic and foreign currency deposit ratings upgraded, including Vietcombank, BIDV, OCB, SeABank, TPBank, Agribank , VIB and VietinBank.

Regarding counterparty risk indicators in domestic and foreign currencies and assessment of Vietnamese counterparty risk, there are also 7 banks upgraded including BIDV, Agribank, VietinBank, ABBank, LienVietPostBank, SHB and MSB.

This is good news for the Vietnamese banking industry, especially for upgraded banks.

Moody's believes that improvements in standalone credit strength and baseline credit assessments could help MSB, ABBank, LienVietPostBank and SHB upgrade their deposit and issuer ratings.

However, upgrading the ratings for Vietcombank, VietinBank, BIDV and Agribank is unlikely as these banks have achieved the same Ba2 sovereign rating for Vietnam.

Meanwhile, TPBank, OCB, SeABank and VIB also need to upgrade to improve their ratings.

Moody's has adjusted the rating outlook of Agribank, BIDV, OCB, SeABank, TPBank, VIB, Vietcombank and VietinBank from "stable" to "positive".

In particular, ABBank, LienVietPostBank and MSB still maintain a "stable" rating, while SHB is still rated "positive".

In particular, Moody's warned that if government support for banks declines or Vietnam's sovereign credit rating is downgraded, the organization may downgrade the deposit ratings of these 12 banks.

Previously, Moody's upgraded Vietnam's long-term national credit rating from Ba3 to Ba2, making Vietnam the only country in the Asia-Pacific region and one of four countries worldwide to have its credit rating upgraded by Moody's in 2022 .

Quoc Tiep (according to Sputnik)

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