Credit rating agency Fitch Ratings has just announced a rating upgrade for 8 banks in Vietnam including Vietcombank, Agribank, VietinBank, ACB, MB, Standard Chartered Vietnam, HSBC Vietnam and ANZ Vietnam.
This move was made after Fitch Ratings upgraded Vietnam's credit rating to BB+ and forecast the country's long-term growth at 7%/year on December 8.
Accordingly, Fitch Ratings has raised the long-term issuer default rating (IDR) of Vietcombank, Agribank and VietinBank from 'BB' to 'BB+' and the Government Support Rating to 'bb+' from 'bb', while IDR outlook rated stable.
This action reflects the assessment of the Government's ability to improve in supporting banks in the system as shown by upgrading Vietnam's rating to 'BB+' from 'BB'.
Fitch Ratings has upgraded MB's long-term issuer default rating (IDR) from 'BB-' to 'BB' and its Government Support Rating (GSR) from 'bb-' to 'bb'; IDR outlook is stable.
For ACB, the agency upgraded its Government Support Rating (GSR) from 'b+' to 'bb-', at the same time, maintaining ACB's long-term debt issuer default rating (IDR) at 'BB-'. Outlook is rated stable.
Along with that, Fitch Ratings has rated Vietcombank and ACB's Viability Rating (VR) at 'bb-'; Agribank and VietinBank are at level 'b'; MB is at 'b+' level.
The 3 banks with 100% foreign capital including HSBC Vietnam, ANZ Vietnam and Standard Chartered Vietnam, Fitch Ratings upgraded the long-term IDR from 'BB' to 'BB+' and the debt rating long-term domestic market from 'BBB-' to 'BBB'. The outlook for the long-term IDR is stable.
At the same time, it also raised the short-term local currency IDR ratings of these banks to 'F2' from 'F3' and the Shareholder Support Rating (SSR) to 'bb+' from 'bb'.
Previously, Fitch Ratings upgraded Vietnam's long-term foreign currency issuer default rating from BB to BB+ with a "stable" outlook, raise Vietnam's long-term debt issuer rating and national credit rating ceiling from BB to BB+. In particular, the outlook for long-term debt issuer ratings is "stable".
This action reflects Fitch's more positive assessment of Vietnam's medium-term growth prospects. The above outlook is reinforced by strong foreign direct investment (FDI) inflows, thereby promoting sustainable improvements in credit structure.
According to Fitch Ratings' assessment, short-term economic obstacles due to tensions in the real estate sector, or weak international demand are unlikely to affect the medium-term macro-outlook. At the same time, support policies are expected to be sufficient to limit short-term risks.
This agency also forecasts Vietnam's medium-term growth at about 7%/year.
Source: Fitch Ratings, vietnambiz
Compiled by VietnamCredit