Fitch Ratings has upgraded the long-term foreign-currency issuer default rating (IDR) of six banks in Vietnam to ‘BB+,’ one to ‘BB,’ and one unchanged at ‘BB-,’ the rating agency announced Wednesday.
Fitch made the move after it upgraded Vietnam's long-term foreign-currency issuer default rating last week, to ‘BB+’ from ‘BB’ with stable outlook.
Six banks with improved ratings at ‘BB+’ and stable outlook are Vietcombank, VietinBank, Agribank, Standard Chartered Bank Vietnam, HSBC Vietnam, and ANZ Vietnam.
For Vietcombank, VietinBank, and Agribank, three state-owned or state-controlled banks, the upgrade reflected the high possibility that state support is likely to be forthcoming in times of need.
For three foreign banks, the moves followed the upgrade of Vietnam's sovereign rating to 'BB+', from 'BB', with a stable outlook, Fitch Ratings said.
Regarding Military Bank (MBBank), the long-term foreign-currency issuer default rating (IDR) was upgraded to 'BB' from 'BB-' and the government support rating (GSR) to 'bb' from 'bb-'. The lender was also given a stable outlook.
About Asia Commercial Bank (ACB), the long-term foreign-currency issuer default rating (IDR) was affirmed at 'BB-' with stable outlook. The rating action was in line with Fitch's view of the state's improving ability to support the bank, in times of need, as indicated by the upgrade in Vietnam's sovereign rating.
On December 8, Fitch Ratings upgraded Vietnam's Long-Term Foreign-Currency Issuer Default Rating (IDR) to “BB+”, from “BB” with a stable outlook. The upgrade reflects Vietnam's favorable medium-term growth outlook, underpinned by robust foreign direct investment (FDI) inflows, which Fitch Ratings expects will continue to drive sustained improvements in its structural credit metrics.