Singapore, May 03, 2017 -- Moody's Investors Service has affirmed the long-term and short-term
deposit and, where applicable, issuer and senior debt ratings
of eight banks in Vietnam (B1 positive).
At the same time, Moody's has revised the outlooks for the local
currency deposit and local and foreign currency issuer ratings of these
institutions to positive from stable.
The rating actions follow Moody's affirmation of Vietnam's
B1 sovereign rating, and change in the outlook for the sovereign's
rating to positive from stable on 28 April 2017. For more information
on the sovereign credit rating action, please refer to the Government
of Vietnam issuer page on www.moodys.com.
The affected banks are: (1) JSC Bank for Foreign Trade of Vietnam
(Vietcombank), (2) Vietnam JSC Bank for Industry and Trade (Vietinbank),
(3) JSC Bank for Investment and Development of Vietnam (BIDV), (4)
An Binh Commercial Joint Stock Bank, (5) Asia Commercial Bank,
(6) Military Commercial Joint Stock Bank, (7) Vietnam International
Bank, and (8) Vietnam Technological and Commercial JSB (Techcombank).
The baseline credit assessments (BCAs), adjusted BCAs and counterparty
risk assessments assigned to the eight banks stated above are unaffected
by today's rating actions.
The credit ratings, assessments and outlooks assigned to the other
seven Moody's-rated banks in Vietnam are unaffected by the
outlook change on the Vietnam sovereign rating. These seven unaffected
banks are: (1) Ho Chi Minh City Development JSC Bank (B2 stable),
(2) Saigon - Hanoi Commercial Joint Stock Bank (B2 stable),
(3) Saigon Thuong Tin Commercial Joint-Stock Bank (Sacombank,
B3 negative), (4) Tien Phong Commercial Joint Stock Bank (B2 stable),
(5) Vietnam Maritime Commercial Joint Stock Bank (B3 positive),
(6) Vietnam Prosperity Jt. Stk. Commercial Bank (B3 stable)
and (7) Orient Commercial Joint Stock Bank (B2 stable).
The full list of institutions and their related entities that are affected
by today's rating actions is presented at the end of this press release.
RATINGS RATIONALE
Today's rating actions on the eight Vietnamese banks are driven by Moody's
affirmation on 28 April 2017 of Vietnam's B1 sovereign rating,
and the change in the country's rating outlook to positive from stable
on the same date.
Vietnam's sovereign credit strength is a key input in Moody's deposit
and issuer ratings for Vietnamese banks, because the country's
credit strength affects Moody's assessment of the government's capacity
to provide support to the banks in times of stress.
Moody's revision of the outlook on Vietnam's B1 sovereign rating
to positive from stable signals the government's potentially higher
capacity to provide such support to the banks.
The positive outlook on the Vietnam government rating is based on Moody's
expectations that:
1. Strong foreign direct investment inflows, fostered by
ongoing economic reform, will continue to diversify the economy
and enhance economic performance when compared to rating peers;
2. Macroeconomic and external stability will be maintained;
and
3. The resulting strong growth and stable macroeconomic environment
will help stabilize government debt around current levels.
The B2 foreign currency deposit ratings of the eight Vietnamese banks
were affirmed with stable outlooks, because these ratings are constrained
by the B2 foreign currency deposit ceiling for Vietnam.
WHAT COULD MOVE THE RATING UP/DOWN
If the B1 rating on the Vietnam government is upgraded, Moody's
will likely upgrade the long-term ratings of the eight Vietnamese
banks stated above, by incorporating additional notches of public
support uplift.
The long-term ratings of the eight Vietnamese banks could be downgraded
if there is a severe deterioration in their credit fundamentals,
and/or Moody's assesses that government support for the banks has
weakened.
The principal methodology used in these ratings was Banks published in
January 2016. Please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
The ratings and ratings outlooks for the affected financial institutions
are listed below in alphabetic order:
An Binh Commercial Joint Stock Bank
- BCA and Adjusted BCA at b2, no change
- Affirm foreign currency long-term bank deposit ratings
at B2; outlook stable
- Affirm local currency long-term bank deposit ratings at
B2; outlook positive
- Affirm local and foreign currency long-term issuer ratings
at B2; outlook positive
- Long-term CR Assessment at B1(cr), no change
- Affirm local currency and foreign currency short-term
deposit ratings at NP
- Affirm local currency and foreign currency short-term
issuer ratings at NP
- Short-term CR Assessment at NP(cr), no change
- Outlook changed to Stable(m) from Stable
Asia Commercial Bank
- BCA and Adjusted BCA at b2, no change
- Affirm foreign currency long-term bank deposit ratings
at B2; outlook stable
- Affirm local currency long-term bank deposit ratings at
B2; outlook positive
- Affirm local and foreign currency long-term issuer ratings
at B2; outlook positive
- Long-term CR Assessment at B1(cr), no change
- Affirm local currency and foreign currency short-term
deposit ratings at NP
- Affirm local currency and foreign currency short-term
issuer ratings at NP
- Short-term CR Assessment at NP(cr), no change
- Outlook changed to Stable(m) from Stable
JSC Bank for Foreign Trade of Vietnam
- BCA and Adjusted BCA at b2, remained review for upgrade
- Affirm foreign currency long-term bank deposit ratings
at B2; outlook stable
- Affirm local currency long-term bank deposit ratings at
B1; outlook positive
- Affirm local and foreign currency long-term issuer ratings
at B1; outlook positive
- Long-term CR Assessment at B1(cr), remained review
for upgrade
- Affirm local currency and foreign currency short-term
deposit ratings at NP
- Affirm local currency and foreign currency short-term
issuer ratings at NP
- Short-term CR Assessment at NP(cr), no change
- Outlook changed to Stable(m) from Stable
JSC Bank for Investment & Development of Vietnam
- BCA and Adjusted BCA at caa1, no change
- Affirm foreign currency long-term bank deposit ratings
at B2; outlook stable
- Affirm local currency long-term bank deposit ratings at
B1; outlook positive
- Affirm local and foreign currency long-term issuer ratings
at B1; outlook positive
- Long-term CR Assessment at B1(cr), no change
- Affirm local currency and foreign currency short-term
deposit ratings at NP
- Affirm local currency and foreign currency short-term
issuer ratings at NP
- Short-term CR Assessment at NP(cr), no change
- Outlook changed to Stable(m) from Stable
Military Commercial Joint Stock Bank
- BCA and Adjusted BCA at b2, no change
- Affirm foreign currency long-term bank deposit ratings
at B2; outlook stable
- Affirm local currency long-term bank deposit ratings at
B2; outlook positive
- Affirm local and foreign currency long-term issuer ratings
at B2; outlook positive
- Long-term CR Assessment at B1(cr), no change
- Affirm local currency and foreign currency short-term
deposit ratings at NP
- Affirm local currency and foreign currency short-term
issuer ratings at NP
- Short-term CR Assessment at NP(cr), no change
- Outlook changed to Stable(m) from Stable
Vietnam International Bank
- BCA and Adjusted BCA at b2, no change
- Affirm foreign currency long-term bank deposit ratings
at B2; outlook stable
- Affirm local currency long-term bank deposit ratings at
B2; outlook positive
- Affirm local and foreign currency long-term issuer ratings
at B2; outlook positive
- Long-term CR Assessment at B1(cr), no change
- Affirm local currency and foreign currency short-term
deposit ratings at NP
- Affirm local currency and foreign currency short-term
issuer ratings at NP
- Short-term CR Assessment at NP(cr), no change
- Outlook changed to Stable(m) from Stable
Vietnam JSC Bank for Industry and Trade
- BCA and Adjusted BCA at b2, no change
- Affirm foreign currency long-term bank deposit ratings
at B2; outlook stable
- Affirm local currency long-term bank deposit ratings at
B1; outlook positive
- Affirm local and foreign currency long-term issuer ratings
at B1; outlook positive
- Affirm foreign currency senior unsecured rating at B1; outlook
positive
- Long-term CR Assessment at B1(cr), no change
- Affirm local currency and foreign currency short-term
deposit ratings at NP
- Affirm local currency and foreign currency short-term
issuer ratings at NP
- Short-term CR Assessment at NP(cr), no change
- Outlook changed to Stable(m) from Stable
Vietnam Technological and Commercial JSB
- BCA and Adjusted BCA at b2, no change
- Affirm foreign currency long-term bank deposit ratings
at B2; outlook stable
- Affirm local currency long-term bank deposit ratings at
B2; outlook positive
- Affirm local and foreign currency long-term issuer ratings
at B2; outlook positive
- Long-term CR Assessment at B1(cr), no change
- Affirm local currency and foreign currency short-term
deposit ratings at NP
- Affirm local currency and foreign currency short-term
issuer ratings at NP
- Short-term CR Assessment at NP(cr), no change
- Outlook changed to Stable(m) from Stable
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead analyst and the Moody's legal entity that has issued the ratings.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Eugene Tarzimanov
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077
Gene Fang
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077
Releasing Office:
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077
