On 8/12/2011, Standard & Poor's (S&P) announced the adjustment of credit rating result for the long-term local currency/foreign currency partners of the Bank for Investment and Development of Vietnam (BIDV) from BB- to B+ (reduce one grade). The rating of short-term local currency/foreign currency partners is kept unchanged at level B.

This is a movement in reviewing the rating of 44 banks in Asia Pacific region under the new evaluation method announced by S&P in 11/2011. According to this new method, the evaluation result of operating environment shall determine the basic rating of the banks in that country. Because the evaluation mark of Vietnam is reduced from level 9 to level 10, the basic rating of all banks of Vietnam is also adjusted to level B.

However, because S&P highly evaluated the support capacity of the Government for BIDV thanks to the importance of BIDV for the banking system of Vietnam, the partner rating of BIDV is raised one grade compared to the basic rating, to level B+.

Thus, the rating downgrade of BIDV by S&P is not due to the anxiety about the financial capacity of BIDV but due to the change in evaluation method attaching to the adjustment of national evaluation. Therefore, in this same adjustment, two other commercial banks are also reduced grade similarly to level B+ (at present, in Vietnam only BIDV and 02 these commercial banks hire S&P to carry out the credit rating in order to continuously improve the transparency and operation direction in accordance with the international practice).

In fact, BIDV still receives the appreciation from the organizations, local and domestic economic experts. The performance of IPO by BIDV at the end of December 2011 promises the positive and drastic changes in capacity and operation of the Bank.

Besides, the selection by the Government, State Bank for BIDV to be the supporting unit for the mergence of three Commercial Joint Stock Banks in Vietnam enhances the prestige, shows the capacity and role of BIDV as one of the backbone, leading units in the banking system of Vietnam. Fitch Ratings thinks that the past movements are the positive step to intensify the strength for the banking system of Vietnam, at the same time judges that the economic growth prospect in the long term of Vietnam is still at good level.

For further information, please contact:

Branding and Public Relations Division

Bank for Investment and Development of Vietnam

Tel: 04. 22205256; Fax: 04. 22225316