Logos of some Vietnamese banks (Source: vietnambiz.vn) Moody's has upgraded the long-term local (LC) and foreigncurrency (FC) deposit and issuer ratings of eight banks by one notch (Vietcombank,BIDV, OCB, SeABank, TPBank, Agribank, VIB, VietinBank) and the LC and FCCounterparty Risk Ratings and Counterparty Risk Assessment of seven banks byone notch of BIDV, Agribank, VietinBank, ABBank, LienVietPostBank, SHB, MSB.
The rating actions on the banks follow the firm’s upgrade ofVietnam's sovereign rating to Ba2 from Ba3 on September 6, and change of thesovereign rating outlook to stable from positive on the same date.
Moody's said Vietnam's credit strength is a key input in itsdeposit and debt ratings for financial institutions in the country. The upgradein bank's ratings reflects the government’s stronger ability to provide supportfor banks in times of stress.
Besides, Moody's has also changed the rating outlooks ofAgribank, BIDV, OCB, SeABank, TPBank, VIB, Vietcombank and Vietinbank to stablefrom positive. The rating outlook of ABBank, LienVietPostBank and MSB remains stable while that of SHB stays positive.
Amid the complex internationalsituation leading to over 30 rating downgrades globally over the past eightmonths, Vietnam is the only country in the Asia-Pacific and one of the four in the world to record a rating upgrade by Moody'ssince the beginning of 2022.
The Ministry ofFinance said the upgrade of Vietnam’s sovereignrating to Ba2 shows the Moody’s recognition of the country’s increasing economicstrength and better resilience to external macroeconomic shocks compared toothers with the same rating./.
VNA
