|Moody's Investors Service last week assigned its new bank rating methodology of Counterparty Risk Assessments (CR Assessments) to nine Vietnamese banks. — Photo vietstock
HA NOI (VNS) — Moody's Investors Service last week assigned its new bank rating methodology of Counterparty Risk Assessments (CR Assessments) to nine Vietnamese banks.
However, credit ratings assigned to these nine Vietnamese banks remain unchanged.
According to Moody's long-term CR Assessments, it has given B1 (CR) to Viet Nam Bank for Industry and Trade (Vietinbank) and Bank for Investment and Development of Viet Nam (BIDV), while B2 (CR) has been assigned to Asia Commercial Bank (ACB), Military Commercial Joint Stock Bank (MB), Sai Gon-Ha Noi Commercial Joint Stock Bank (SHB), Sai Gon Thuong Tin Commercial Joint-Stock Bank (Sacombank), and Viet Nam Prosperity Joint Stock Commercial Bank (VP Bank), as well as Viet Nam Technological and Commercial Joint Stock Bank (Techcombank) and Viet Nam International Bank (VIB).
Concurrently, not-prime short-term CR Assessments have been assigned to all the Vietnamese banks.
According to Moody's, this announcement follows the publication of its new bank rating methodology on March 16, 2015.
CR Assessments are opinions on how counterparty obligations are likely to be treated if a bank fails and are distinct from debt and deposit ratings, in that they consider only the risk of default rather than expected loss; and are applicable to counterparty obligations and contractual commitments rather than debt or deposit instruments.
A CR Assessment is an opinion on the counterparty risk related to a bank's covered bonds, contractual performance obligations (servicing), and derivatives such as swaps, letters of credit, guarantees, and liquidity facilities. — VNS