Moody's upgraded the baseline credit assessment and adjusted baseline credit assessment of JSCB for Investment and Development of Vietnam, or BIDV, to "b3" from "caa1" and affirmed other ratings of the bank.
The rating agency affirmed the bank's local-currency bank deposits rating, and local and foreign-currency issuer ratings at B1/Not Prime, while its foreign-currency bank deposits rating was affirmed at B2/Not Prime. In addition, the agency affirmed the bank's counterparty risk assessment at B1(cr)/Not Prime(cr).
Moody's said the upgrade of BIDV's BCA takes into account the stabilization in its asset quality and improvements in its funding profile. It expects the stabilizing trend in the asset quality to continue over the next 12 to 18 months. The bank's problem loan ratio declined to 7.9% as at the end of September 2017 from 8.4% at the end of 2016, driven largely by loan growth as well as a stabilization in the pace of new problem loan formation.
The outlook on BIDV's local-currency bank deposits, and local and foreign-currency issuer ratings, remains positive, while the outlook on the bank's foreign-currency bank deposits rating remains stable.
