Vietnamese banks' credit ratings upgraded

Credit ratings agency Fitch Ratings has recently revealed upgrades for several Vietnamese banks, in the wake of its decision to raise Vietnam's national credit rating to BB+ with a long-term outlook of "Stable".

The rating agency upgraded the Long-Term Foreign-Currency Issuer Default Ratings of three major banks, namely VietinBank, Vietcombank, and Agribank, from BB to BB+ with a "Stable" outlook. Additionally, the Military Bank (MB)'s credit rating has also been elevated to BB with a "Stable" outlook.

With improving business environment, Fitch Ratings also raised the operating environment scores for the Vietnamese banking system, anticipating that the economy will continue to recover and grow robustly over the medium term.

Credit conditions have gradually eased since the beginning of this year, thanks to decisive and appropriate monetary policy actions. At the same time, Fitch anticipated the financial efficiency of the Vietnamese banking sector to recover next year, buoyed by rising credit demand and improved net interest margins of commercial banks.

Fitch forecast a GDP growth of 6.3% for Vietnam in 2024./.

VNA