Moody's ponders downgrading 17 Vietnamese banks
The agency will unlikely upgrade the ratings of the 17 banks, because their ratings are on review for downgrade.
Moody's Investors Service has placed some of the ratings of 17 Vietnamese banks on review for downgrade, one day after taking the same move with Vietnam’s sovereign rating.
Illustrative photo
|
The rating actions on the 17 banks follow Moody's placement of Vietnam's Ba3 sovereign rating under review for downgrade on October 9.
“The review of the banks' ratings is driven purely by the sovereign rating action, and does not reflect a weakening of the banks' standalone financial profiles,” the US-based rating agency said in a statement.
The 17 affected banks are An Binh Commercial JS Bank (ABB), Asia Commercial Bank (ACB), Ho Chi Minh City Development JSC Bank (HDBank), JSC Bank for Foreign Trade of Vietnam (Vietcombank), JSC Bank for Investment and Development of Vietnam (BIDV), Lien Viet Post JS Commercial Bank (Lien Viet), Military Commercial JS Bank (Military Bank), Nam A Commercial JS Bank (Nam A Bank).
The other nine banks include Orient Commercial JS Bank (OCB), Saigon - Hanoi Commercial JS Bank (SHB), Tien Phong Commercial JS Bank (TPBank), Vietnam Bank for Agriculture & Rural Development (Agribank), Vietnam International Bank (VIB), Vietnam JSC Bank for Industry and Trade (VietinBank), Vietnam Maritime Commercial JS Bank (MSB), Vietnam Prosperity JS Commercial Bank (VP Bank), and Vietnam Technological and Commercial JS Bank (Techcombank).
Moody's could downgrade some ratings and assessments of the 17 banks if Moody's downgrades Vietnam's sovereign rating.
The agency will unlikely upgrade the ratings of the 17 banks, because their ratings are on review for downgrade. Nevertheless, Moody's will confirm the banks' ratings with a stable outlook, if Moody's confirms Vietnam's sovereign rating at Ba3 with a stable outlook.
Moody’s on Wednesday said the key driver behind its decision to place Vietnam's rating under review for downgrade is institutional weaknesses, as revealed by delayed payments on an obligation by the government. The review could last three months
22:20, 2024/12/27
Hanoi to rent nearly 900 sidewalks next year
The number of streets approved by the city's authorities for on-street parking is 234 as of December 16, 2024.
15:13, 2024/12/27
Quoc Oai District breaks ground on industrial clusters
The industrial clusters have a total investment of US$35.7 million.
14:42, 2024/12/27
Hanoi promotes circular agriculture through technology transfer
Through the economic models, farmers have had access to advanced technologies, the application of biotechnology, and the creation of safe and high-quality agricultural products.
17:13, 2024/12/26
Hanoi releases plan for sustainable production and consumption
Hanoi will take concerted action focusing on the circular economy and promoting domestic production and spending.
14:34, 2024/12/26
UK’s accession to CPTPP to benefit Vietnam’s exports in 2025
Vietnam, in particular, will gain further access to a high-quality market, complementing its connections with Japan, Canada, and Australia.
- Hanoi to attract US$768 million in industrial parks in 2024
- Stronger decentralization key to Hanoi's urban railway ambitions
- Regulatory efforts underway to strengthen e-commerce in Vietnam
- OCOP and agricultural products promotion week underway in Hanoi suburb
- Vietnamese Gen Z's green mission
- Hanoi's flower villages are in full Tet preparation mode