Vietinbank, BIDV evaluated stable by S&P

Vietinbank and BIDV received a stable rating from Standard and Poor's, improving from its previous negative mark.

At the same time, Standard & Poor’s affirmed its ‘B+/B’ issuer credit ratings on both banks.

The ratings on Vietinbank and BIDV are one notch above the banks’ respective stand-alone credit profiles, reflecting their “high systemic importance” in Vietnam’s banking system, and of a “highly supportive” government, which qualifies for a one-notch rating uplift from the banks’ stand-alone credit profile of ‘b’.

The outlook revision reflects Standard & Poor’s assessment of a reduction in the risks to macroeconomic and financial stability in Vietnam. Key indicators such as credit growth, the level of foreign exchange reserves, and domestic currency interest rates have improved over the past 18 months.