|Fitch has upgdraded ratings of Vietinbank and Agribank from "B" to "B+". – Photo Baomoi
HA NOI (VNS) — Fitch Ratings has upgraded the Long-Term Issuer Default Ratings (IDRs) and Support Rating Floors (SRFs) of Viet Nam Bank for Agriculture and Rural Development (Agribank), and Viet Nam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) from ‘B' to ‘B+'.
This follows an improvement in Viet Nam's sovereign rating. The outlook of the banks has been revised to stable from positive, reflecting a similar revision of the sovereign's outlook, according to its statement on Wednesday.
The Long-Term IDRs of Agribank and Vietinbank are driven by State support. Their Support Ratings (SRs) and SRFs reflect Fitch's expectation of likely extraordinary state support, as both banks are majority-owned by the government and among the most systemically important banks with quasi-policy functions in the domestic economy.
Agribank and Vietinbank are the largest and second-largest banks by asset size in Viet Nam with dominant domestic franchises.
Also according to Fitch, the banks' ratings were knocked down one notch from the sovereign rating to take into consideration the Government's finances, which may limit the timeliness of its support for the banks.
The Stable Outlook of Agribank and Vietinbank reflect the Stable Outlook on Viet Nam's sovereign rating, according to the statement. — VNS