BizLIVE -

The rating actions follow Moody's affirmation of Vietnam's Ba3 issuer rating and the change in the outlook to positive from negative on 18 March 2021.

Moody’s Upgraded Ratings for 15 Vietnamese Banks
In the latest statement, Moody's Investors Service has affirmed the long-term local and foreign currency deposit ratings, and where applicable, the issuer and senior unsecured ratings of 15 banks in Vietnam (Ba3 positive).
At the same time, Moody's revised the outlook for the long-term local and foreign currency deposit and issuer ratings of 5 banks to positive from negative, 4 banks to positive from stable and 6 banks to stable from negative.
The rating actions follow Moody's affirmation of Vietnam's Ba3 issuer rating and the change in the outlook to positive from negative on 18 March 2021. 
The affected 15 banks are: (1) An Binh Commercial Joint Stock Bank (ABB), (2) Asia Commercial Bank (ACB), (3) Ho Chi Minh City Development JSC Bank (HDBank), (4) JSC Bank for Foreign Trade of Vietnam (Vietcombank), (5) JSC Bank for Investment & Development of Vietnam (BIDV), (6) Lien Viet Post Joint Stock Commercial Bank (Lien Viet), (7) Military Commercial Joint Stock Bank (MB), (8) Orient Commercial Joint Stock Bank (OCB), (9) Southeast Asia Commercial Joint Stock Bank (SeABank), (10) Tien Phong Commercial Joint Stock Bank (TPBank), (11) Vietnam Bank for Agriculture & Rural Development (Agribank), (12) Vietnam International Bank (VIB), (13) Vietnam JSC Bank for Industry and Trade (Vietinbank), (14) Vietnam Prosperity Jt. Stk. Commercial Bank (VPBank) and (15) Vietnam Technological and Commercial JSB (Techcombank).
With the exception of ABB, the Baseline Credit Assessments (BCAs), adjusted BCAs, Counterparty Risk Assessments (CRA) and counterparty risk ratings (CRR) assigned to the banks stated above are unaffected by today's rating actions. Moody's has downgraded ABB's BCA and adjusted BCA to b2 from b1, while the long-term CRA and CRR have been downgraded to B1(cr) and B1 from Ba3(cr) and Ba3, respectively.
Today's rating actions on 15 Vietnamese banks are driven by Moody's affirmation on 18 March 2021 of Vietnam's Ba3 issuer rating, and the change in the country's rating outlook to positive from negative.Vietnam's sovereign credit strength is a key input in Moody's assessment of the deposit and issuer ratings of Vietnamese banks, because the country's credit strength affects the government's capacity to provide support to the banks in times of stress.
Moody's revision of the outlook on Vietnam's Ba3 issuer rating to positive from negative signals the government's potentially higher capacity to provide extraordinary support to the banks. As a result, a potential upgrade of the sovereign rating -- as indicated by the positive outlook -- will likely result in upgrades of many Vietnamese banks, via the widening of the government support uplift.
The positive outlook on Vietnam's sovereign rating reflects signs of broad-based improvements in Vietnam's institutional and governance strength that may strengthen its credit profile over time, especially as the economy may benefit from the macro changes accelerated by shifts in production location and demand following the coronavirus pandemic.

DIEP NGUYEN