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ActionsRELEASED DATE 08 Jun 2012
June 6, 2012 Standard & Poor's Rating Services (S&P) revised the outlooks on Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) to stable from negative. At the same time, S&P affirmed its 'B+/B' issuer credit rating and ASEAN scale rating to 'axBB/axB' on BIDV.
According to S&P, the rating on BIDV is one notch above the bank's respective stand-alone credit profiles (which is 'b'), reflecting: (1) the bank "high systematic importance in Vietnam's banking system; and (2) S&P assessment of a "highly supportive" government.
S&P revised the outlook on BIDV following a similar sovereign rating action on Vietnam to stable from negative; affirmed 'BB-/B' sovereign rating; and revised ASEAN scale rating to 'axBB+/axB'. Based on S&P's assessment, macro-economic risk has been reduced and the financial situation in Vietnam has shown signs of stabilizing. Key indicators such as credit growth, FX reserves and the level of interest rates have improved in the last 18 months plus government priority to maintaining price stability. The adoption of tight monetary policy since 2011 indeed has helped restore confidence in the government determination of price stability.
BIDV has been evaluated and rated since 2010 by S&P, alongside Moody's has performed credit rating on the bank for 6 years. S&P currently rates 04 banks in Vietnam which are BIDV, Vietcombank, Vietinbank and Techcombank. Credit rating of BIDV as follows:
Items |
S&P’s rating |
Outlook |
Stable |
Long-term issuer credit rating |
B+ |
Short-term issuer credit rating |
B |
Stand-alone credit profile |
b |
ASEAN long term/short term scale rating |
axBB/axB |