HA NOI — The international ratings agency Moody's has assigned a standalone credit assessment of E+ to Military Bank.
The rating, which translates into b2 on the long-term scale, reflected the bank's fairly healthy reported financial metrics, which were comparable to higher-rated regional peers and included consistent profitability in recent years despite last year's decreasing trend, Moody's said.
The rating was also supported by the bank's comfortable liquidity and good reported asset quality, which received an A rating.
Moody's earlier gave Asia Commercial Bank a standalone credit assessment of A due to the bank's good profitability, better-than-average asset quality, good efficiency and ample liquidity. It took into consideration the bank's disciplined credit approval and monitoring processes, progressive risk management and controls, and the skills transfers it received from its strategic shareholder, Standard Chartered.
Rival credit rating agency Fitch last week assigned Vietinbank a long-term B rating and a recovery rating of RR4 on US$250 million worth of outstanding five-year, 8-per-cent senior notes due in 2017. The notes were rated at the same level as Vietinbank's long-term foreign-currency issuer default rating of B, which was based on Fitch's expectation of extraordinary State support to the bank in the event of need. The notes constitute direct, unsubordinated and senior unsecured obligations of the bank, and rank equally with all its other unsecured and unsubordinated obligations.
Vietinbank successfully issued the notes in May, making it the first financial institution in Viet Nam to raise capital on global financial markets by issuing senior notes.
Vietinbank chairman Pham Huy Hung said more than 110 investors bought the notes, with 40 per cent of buyers coming from Asia, 37 per cent from Europe and 23 per cent from the US. Of these, investment funds accounted for 48 per cent, private banks 28 per cent, other banks 14 per cent, public financial institutions 8 per cent and enterprises 2 per cent.
At the end of last year, Vietinbank was the second largest bank in Viet Nam with audited assets worth a total of VND461 trillion ($21.9 billion). — VNS