Vietnamese banks" credit ratings upgraded
Customers at a transaction point of VietinBank. Illustrative image (Photo: VNA)
Credit ratings agency Fitch Ratings has recently revealed upgrades for several banks, in the wake of its decision to raise Vietnam's national credit rating to BB with a long-term outlook of "Stable".
It upgraded the Long-Term Foreign-Currency Issuer Default Ratings (IDR) of three major banks, namely VietinBank, Vietcombank, and Agribank, from BB to BB with a "Stable" outlook. Additionally, the Military Bank (MB)'s credit rating has also been elevated to BB with a "Stable" outlook.
With improving business environment, Fitch Ratings also raised the operating environment (OE) scores for the Vietnamese banking system, anticipating that the economy will continue to recover and grow robustly over the medium term.
Credit conditions have gradually eased since the beginning of this year, thanks to decisive and appropriate monetary policy actions. At the same time, Fitch anticipated the financial efficiency of the Vietnamese banking sector to recover next year, buoyed by rising credit demand and improved net interest margins of commercial banks.
The non-performing loan (NPL) ratio is also expected to improve as the economy rebounds. Fitch forecast a GDP growth of 6.3% for Vietnam in 2024. Additionally, stable asset quality indicators and enhanced profitability contribute to the improved credit ratings for these banks.
Dr. Vo Tri Thanh, member of the National Financial and Monetary Policy Advisory Council, said the upgrade holds significance as it enables banks to access international funding sources more easily, leading to cost saving through securing capital at more favourable interest rates.
He said with the current credit rating, there is a need for further improvement in financial health, position and brand to strengthen investor confidence, expand business opportunities, and improve business prospects./.
Related News
Latest News
M&A activities show signs of recovery
13:28 | 04/11/2024 Finance
Fiscal policy needs to return to normal state in new period
09:54 | 04/11/2024 Finance
Ensuring national public debt safety in 2024
17:33 | 03/11/2024 Finance
Removing many bottlenecks in regular spending to purchase assets and equipment
07:14 | 03/11/2024 Finance
More News
Continue to handle cross-ownership in banks
10:35 | 02/11/2024 Finance
Striving for average CPI not to exceed 4%
16:41 | 01/11/2024 Finance
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable
16:39 | 01/11/2024 Finance
Removing difficulties in public investment disbursement
09:30 | 31/10/2024 Finance
State-owned commercial banking sector performs optimistic growth, but more capital in need
09:28 | 31/10/2024 Finance
Stipulate implementation of centralized bilateral payments of the State Treasury at banks
09:29 | 29/10/2024 Finance
Rush to finalize draft decree on public asset restructuring
09:28 | 29/10/2024 Finance
Inspection report on gold trading activities being complied: SBV
14:37 | 28/10/2024 Finance
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%
10:45 | 28/10/2024 Finance
Your care
M&A activities show signs of recovery
13:28 | 04/11/2024 Finance
Fiscal policy needs to return to normal state in new period
09:54 | 04/11/2024 Finance
Ensuring national public debt safety in 2024
17:33 | 03/11/2024 Finance
Removing many bottlenecks in regular spending to purchase assets and equipment
07:14 | 03/11/2024 Finance
Continue to handle cross-ownership in banks
10:35 | 02/11/2024 Finance