Moody's eyes VPBank for upgrade

Moody's said it placed all long-term ratings and assessments of Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and its subsidiary VPBank Finance Co. Ltd. (FE Credit) on review for upgrade.

The rating action follows VPBank's announcement it agreed with A1-rated Sumitomo Mitsui Financial Group, Inc. to sell a 49% equity stake in FE Credit.

“The review for upgrade reflects Moody's expectation that the stand-alone credit strengths of VPBank and FE Credit could improve post the transaction, placing upward pressure on their ratings and assessments. The transaction is still pending external approvals. According to VPBank, the transaction should be completed in 2021. The planned sale will be to SMFG's consolidated subsidiary, SMBC Consumer Finance Co., Ltd.,” the agency said in a press release.

Before the review, the outlook for VPBank and FE Credit was positive.

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