On 14 August 2018, Moody's Investors Service has upgraded the long-term local and foreign-currency deposit and issuer ratings of Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV. Moody's also upgraded the long-term counterparty risk ratings (CRR) and counterparty risk assessments (CRAs) of BIDV. The baseline credit assessments (BCAs) and adjusted BCAs assigned to BIDV are unaffected by these rating actions.

Moody's has also changed the outlook for the local currency deposit and local and foreign-currency issuer ratings of BIDV to stable from positive. Moody's factors in the assumption of a "Very High" probability of government support in times of need into the ratings of BIDV.

 

The rating actions follow Moody's upgrade of Vietnam's sovereign rating to Ba3 from B1, and change in the outlook for the sovereign's rating to stable from positive on 10 August 2018.

 

According to Moody’s, the long-term local-currency bank deposit and local and foreign-currency issuer ratings of BIDV are already at the level of Vietnam's sovereign rating of Ba3 stable. As such, the bank’s ratings could be upgraded if the sovereign rating is upgraded.

 

BIDV is currently one of the leading commercial banks in Vietnam. As of 30 June, the bank’s total assets reached VND1,268 quadrillion, up 5.5 percent from the beginning of the year, maintaining the leading position among Vietnamese banks. Net profits grew by 50 percent year on year. In the first six months of the year, the bank’s pre-tax profit increased 36.4 percent year-on-year.