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Moody’s upgrades Vietnam banks
Moody's Investors Service said it upgraded the long-term local currency deposit and local- and foreign-currency issuer ratings of Asia Commercial Bank (ACB), Military Commercial Joint Stock Bank and Vietnam Technological and Commercial Joint Stock Bank (Techcombank) to B1 from B2.
The agency also affirmed the foreign currency deposit ratings at B2, with the ratings constrained by Vietnam's foreign currency deposit ceiling of B2. The baseline credit assessments were upgraded to b1 from b2.
At the same time, Moody's affirmed the long-term local and foreign-currency deposit and issuer ratings of Vietnam Prosperity Joint Stock Commercial Bank at B2 and upgraded its baseline credit assessment to b2 from b3.
Simultaneously, the agency changed the outlooks on the local-currency deposit and local- and foreign-currency issuer ratings of Asia Commercial Bank, Military Bank and Techcombank to stable from positive, and revised the outlook for the same ratings for VP Bank to positive from stable.
The ratings of the other 12 banks rated by Moody's in Vietnam are unchanged.
The upgrades for ACB, Military Bank and Techcombank are based on the upgrade of their baseline credit assessments to b1 from b2.
“For ACB, the upgrade of its BCA reflects its improved asset quality, following the good progress in the resolution of its legacy problem assets, including the problem assets related to a group of six companies tied to its former vice chairman Mr. Nguyen Duc Kien,” Moody’s said in a news release.
“The upgrade of Military Bank's BCA to b1 from b2 is driven by the consistent improvement in its asset quality as well as Moody's expectation of an improvement in the bank's return on tangible assets (ROA) in 2018, as it expands into the higher yielding retail segment, and reduces its loan loss provisioning levels.”
“As for Techcombank, its BCA upgrade is driven by improved solvency metrics, namely capital, asset quality and profitability.”
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