Outlooks on Vietinbank and BIDV revised to stable on sovereign outlook change; ratings affirmed
Outlooks on Vietinbank and BIDV revised to stable on sovereign outlook change; ratings affirmed
Standard & Poor's Ratings Services today revised the outlooks on Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and Bank for Investment and Development of Vietnam (BIDV) to stable from negative. At the same time, Standard & Poor's affirmed its 'B+/B' issuer credit ratings on both the banks. We also revised the ASEAN scale ratings on BIDV to 'axBB/axB' from 'axBB-/axB'.
* Vietnam outlook revised to stable from negative; 'BB-/B' sovereign ratings affirmed
We revised the outlook on the two banks following a similar sovereign rating
action on Vietnam (BB-/Stable/B; axBB+/axB) earlier today.
The ratings on Vietinbank and BIDV are one notch above the banks' respective
stand-alone credit profiles, reflecting: (1) the banks' "high systemic
importance" in Vietnam's banking system; and (2) our assessment of a "highly
supportive" government, which qualifies for a one-notch rating uplift from the
banks' stand-alone credit profile of 'b'.
Standard & Poor's
