Credit ratings agency Moody’s has upgraded by one notch the long-term deposit and issuer ratings of BIDV and Vietinbank, two of the largest commercial banks in Vietnam.
Vietinbank is one of the largest banks in Vietnam.
In a statement on its website, Moody’s said the upgrades are due to a more stable outlook and they reflect a systematic reassessment of the deposit ratings of Vietinbank and BIDV.
The reassessment came following Moody’s upgrading of the Vietnamese Government’s issuer and senior unsecured bond ratings from B2 to B1 and the upgrade of the long-term foreign currency deposit ceiling from B3 to B2.
Moody’s said the upgrades were driven by the Government’s enhanced capacity to provide extraordinary support to these two banks, which it considers as critically important to the domestic banking sector with market shares of assets of around 10% each at the end of 2013.
Vietinbank and BIDV currently have 64.5% and 95.8% of their respective shares owned by the State, added Moody’s.
It noted that Vietnam’s stronger capacity to offer support to large banks is a result of its improved macro-economic stability, strengthened balance of payments and external payments position, as well as reduced risks in the banking sector.
In its latest report, Moody’s also kept its ratings unchanged for another seven Vietnamese banks, including Techcombank, ACB, Military Bank, SHB, Sacombank, VIB and VPBank.
Đăng ký: VietNam News