Fitch Ratings has upgraded Việt Nam Joint Stock Commercial Bank for Industry and Trade's (Vietinbank) Long-Term Issuer Default Rating (IDR) to 'BB' from 'BB-' on an upgrade of its Government Support Rating (GSR) to 'bb' from 'bb-'.
The Outlook on the IDR is Positive, in line with Việt Nam's sovereign rating of 'BB' with a Positive Outlook. The Viability Rating (VR) was affirmed at 'b'.
Accordingly, the credit rating upgrade of VietinBank is considered based on the following factors.
It is a large commercial bank with a key market share in providing banking and financial services in Việt Nam.
Fitch Ratings said that the Vietnamese government was active and ready to support the banking system, especially large state-owned commercial banks like VietinBank.
Therefore, Fitch has upgraded the Government's support rating for VietinBank (Government Support Rating - GSR) to the same level as the National rating.
Along with that, Fitch has adjusted the outlook on VietinBank's operating environment from stable to positive.
VietinBank's income prospects and profitability have both improved in recent years, with high risk provision buffers, and operating efficiency is expected to continue to grow sustainably.
As a result, Fitch has adjusted VietinBank's outlook on earnings and profitability from stable to positive.
The fact that Fitch Ratings upgraded VietinBank's credit rating contributes to affirming the effective and sustainable operation as well as the prestige and position of VietinBank in the Vietnamese financial and banking market. — VNS
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