Transactions at TPBank in Hanoi (Photo: VNA)

Hanoi (VNA) — For the first time, US ratings agency Moody's Investor Service assigned B2 long-term local and foreign currency deposit and issuer ratings to Tien Phong Commercial Joint Stock Bank (TP Bank), with stable outlook. 

Moody's rates the lender's short-term local and foreign currency deposit and issuer at ‘not prime'. 

The bank's baseline credit assessment (BCA) and adjusted BCA was rated at B3. Moody's assigned Counterparty Risk Assessments of B2(cr)/NP(cr) to the bank. 

TP Bank has the same rating as Vietnam’s five other large banks, including Military Commercial Joint Stock Bank, Vietnam International Bank, Vietnam Technological and Commercial Joint Stock Bank (Techcombank), An Binh Commercial Joint Stock Bank and Asia Commercial Bank. 

The bank’s loan book is focused on retail and small and medium-sized enterprises, which accounted for 45 percent and 26 percent of gross loans, respectively, as of June 2016. 

TP Bank’s total assets were estimated at about 83 trillion VND (3.7 billion USD), making it the 22nd largest bank in Vietnam in terms of assets, occupying 1.2 percent of Vietnam’s banking market. 

According to Moody’s, TP Bank runs a stable operation with a high reliance on market funding with good growth in retail and small and medium-sized enterprise sectors and efficient risk management. 

A TP Bank representative said a positive assessment from Moody’s motivates the bank to deliver for its customers. TP Bank aims to become the leading bank in Vietnam and plans to develop its digital banking services. 

The bank is privately owned with major shareholder groups including SBI Holdings and related companies (about 20 percent stake), DOJI Group and related individuals (19.9 percent), FPT Corporation (around 9 percent) and IFC – belonging to the World Bank Group (4.99 percent).-VNA