S&P revises Vietcombank’s outlook to stable

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Hanoi Times English - 36 month(s) ago 4 readings

The Hanoitimes - Standard & Poor's Ratings Services (S&P) said today that it had revised its outlook o­n the long-term rating o­n Bank for Foreign Trade of Vietnam (Vietcombank) to stable from negative.

The Hanoitimes - Standard & Poor's Ratings Services (S&P) said today that it had revised its outlook o­n the long-term rating o­n Bank for Foreign Trade of Vietnam (Vietcombank) to stable from negative.

Meanwhile, it has also affirmed its 'B+/B' counterparty credit ratings o­n the bank and revised the stand-alone credit profile (SACP) of the bank to 'b+' from 'b'.

"The outlook revision reflects Vietcombank's improved SACP after Mizuho Corporate Bank Ltd (MCB) acquired a 15 percent stake in the bank," said Standard & Poor's credit analyst Ivan Tan.

"We revised Vietcombank's SACP to reflect the bank's improved capital position after the MCB deal."

However, Tan said in S&P’s view, Vietcombank's capital and earnings are weak.

S&P may lower the ratings if Vietcombank's nonperforming loans increase sharply and its operating performance is poor, or capitalization weakens substantially.

The Ho Chi Minh Stock Exchange (HoSE) has given the green light to Vietcombank (coded VCB) to list additional over 347.6 million shares offered to Mizuho Bank o­n the southern bourse starting January 17.

But since the additional shares will not be traded within 5 years, the new listing can o­nly raise the influence of VCB shares o­n the final calculation benchmark VN-Index.

There are about 182.78 million VCB shares listed o­n the southern bourse HoSE accounting for 1 percent of HoSE’s total value.

After the listing, the number of VCB shares will be over 530 million shares worth VND11.1 trillion in value, accounting for 2.81 percent of HoSE’s total value. Its ranking will be revised to No.7 from the current 15.


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