HA NOI — International credit rating agency Standard & Poor's has revised Vietcombank's long-term outlook from negative to stable, but lowered its stand-alone credit profile (SACP) from B+ to B. The bank's counterparty credit rating remained at B+/B.
The revised outlook reflected Vietcombank's improved capital position after Japan-based Mizuho Corporate Bank Ltd completed its acquisition of a 15-per-cent stake in Vietcombank.
The strategic partnership with Mizuho would provide Vietcombank with enhanced products and service offerings, encouraging alignment of its risk management processes and systems with international standards. According to S&P, this could improve Vietcombank's earning profile and mitigate potentially higher credit costs.
S&P also stated that Vietcombank's moderate loan growth following the Government's credit tightening measures would increase the bank's capital sustainability. As a result, the bank was expected to continue to strengthen its balance sheet through higher retained earnings and reasonable dividend payouts.
They opined that Vietcombank would maintain its strong market position in Viet Nam and maintain its financial profile despite challenging market conditions.
Last month, S&P downgraded the long-term credit rating of three domestic banks – the Bank for Investment and Development of Viet Nam (BIDV), Vietcombank and Techcombank from BB – to B+. The short-term rating of the three banks was maintained at B. — VNS