Moody’s reviews several Vietnam banks for upgrade

Moody's Investors Service said it placed on review for upgrade the long-term credit ratings of seven Vietnamese banks.

Moody's also said it placed on review for upgrade the baseline credit assessments and long-term counterparty risk assessments of these seven banks, along with those ratings of two more banks.

The institutions affected are: An Binh Commercial Joint Stock Bank (ABB), Asia Commercial Bank (ACB), JSC Bank for Foreign Trade of Vietnam (Vietcombank), Military Commercial Joint Stock Bank (Military Bank), Saigon - Hanoi Commercial Joint Stock Bank (SHB), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), Vietnam Bank for Industry and Trade (Vietinbank), Vietnam International Bank (VIB) and Vietnam Technological and Commercial Joint Stock Bank (TCB).

The action reflects an expectation that the more benign operating and economic environment for banks in Vietnam will lead to improvements in the banks' credit profiles, notably their asset quality and profitability metrics, Moody’s said.

The positive environment for the banks may also contribute to relative stability in their funding and liquidity, the agency said.

Despite these improvements, Moody's also said it considers that the Vietnamese banking system remains undercapitalized against the backdrop of rapid credit growth and a high share of legacy problem assets, which are not always adequately disclosed on the banks' balance sheets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.