Vietnamplus

Credit rating agency Moody's recently announced its rating upgrade on Agribank's long-term foreign-currency deposit rating from B1 to Ba3.

Credit ratings agency Moody’s Investors Service on August 19 said its stable outlook for Vietnam’s banking system reflects the country’s robust economic performance, which will support asset quality and profitability.

The financial capacity of Vietnam’s credit institutions has solidified in recent years, with their charter capital reaching 578.9 trillion VND (24.85 billion USD) by the end of the first quarter 2019.

Moody’s Investors Service has upgraded the long-term local-currency bank deposits ratings and local- and foreign-currency issuer ratings of three banks of Vietnam from B2 to B1.

The speedy repossession of collateral is a credit-positive step for Vietnamese banks, which continue to grapple with legacy asset-quality issues caused by rapid credit growth and loose underwriting standards of the past decade, Moody’s Investors Services said in a note on August 28.

The outlook for the Vietnamese banking system is stable, driven by the country's good economic growth and stabilising asset quality and good liquidity.