Moody's launches Vietnam credit rating agency

Moody's Corporation has launched a Vietnamese credit rating agency - its partnership with leading local financial institutions, the American firm announced on Tuesday.

The agency, called Vietnam Investors Service And Credit Rating Agency Joint Stock Company (VIS Rating), was initiated by the Vietnam Bond Market Association (VBMA) and received a credit rating agency license from Vietnam’s Ministry of Finance.

Moody’s is the largest shareholder in VIS Rating with a 49% holding. Other founding shareholders include ACB Securities Company, Dragon Capital Finance Limited, Nam A Bank Asset Management Company Limited, VNDIRECT Securities Corporation, and VPS Securities Joint Stock Company. VIS Rating operates independently from Moody’s.

“Moody’s recognizes the vital role that the local debt capital market plays in driving Vietnam’s economic growth,” said Michael West, president of Moody’s Investors Service. “As a global leader in credit ratings, research, and risk analysis, our international presence and local experience will position VIS Rating as the rating agency of choice in Vietnam."

Wendy Cheong, managing director and regional head of Asia-Pacific, Moody’s Investors Service, and member of the board of management at VIS Rating, said: "VIS Rating broadens Moody’s network of domestic partners in Asia-Pacific and complements our leading cross-border coverage in Vietnam."

The value of Vietnam’s outstanding corporate bonds stood at around 13% of GDP as of August 2023, pointing to robust growth potential in its debt capital market, Moody's said.

As Vietnam’s domestic bond market develops, credit ratings and research will play a meaningful role by helping companies access new capital, formulate funding strategies, signal transparency, and maintain investor confidence during times of market stress, according to the company.