VietnamCredit About Us Cafe€redit Contact Us
Go to cart
Banking news: Credit ratings of 3 Vietnamese banks upgraded by Fitch Ratings

Banking news: Credit ratings of 3 Vietnamese banks upgraded by Fitch Ratings

Monday 28, 11 2022
Fitch Ratings has recently upgraded the long-term issuer default ratings (IDR) of VietinBank, Vietcombank and MB, with a positive outlook.

IDR ratings of Vietcombank and VietinBank upgraded from BB- to BB

Specifically, Fitch Ratings has upgraded the IDR ratings of Vietcombank and VietinBank from BB- to BB, and raised the government support rating (GSR) to bb, from the previous bb-.

Vietnamcredit Fitch Ratings

This credit rating agency assessed: "The State Bank has a strong influence on the banking sector in Vietnam. SBV's supervisory activities in recent years, and its responses to recent events reinforce our view that authorities tend to be strongly supportive of the banking system in general, and state-owned banks in particular."

Vietcombank's independent strength index was also upgraded, showing that the bank's risk profile and asset quality have improved in recent years.

Vietcombank is rated as a leading state-owned bank with healthy profitability, adequate capital and liquidity, but risks related to capitalization are small.

As for Vietinbank, Fitch Ratings also emphasized the remarkable support factor from the government with banks playing an important role in the system.

Vietnamcredit Vietinbank

Vietinbank's independent strength index remains unchanged, indicating that the bank's financial performance may continue to improve gradually over the next 12-18 months, with stable loan growth and asset quality while profitability continued to increase due to prepayment of credit provisions.

Meanwhile, MB's credit rating was upgraded by Fitch Ratings from B+ to BB-, in line with the bank's increase in GSR from b to bb-.

The bank's share structure and linkages with state-linked companies suggest more support than other mid-sized banks in Vietnam.

Fitch Ratings

Fitch Ratings believes that Vietnam's sustainable economic growth will continue to support the bank's asset quality and profitability in the next 12-18 months. However, that may be influenced by risks related to its high credit growth - a common feature of many Vietnamese banks.

Source: Fitch Ratings

Compiled by VietnamCredit


Banking & Finance

You may also like

Which bank has the lowest Cost-to-income ratio?
Friday 18, 10 2019

Which bank has the lowest Cost-to-income ratio?

CIR is one of the important indicators to evaluate the business performance...
50 leading brands in 2019
Friday 18, 10 2019

50 leading brands in 2019

Forbes Vietnam announced the 50 most valuable Vietnamese brands in 2019,...
+84 981861066