BIDV Highlights
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Moody’s changes outlook rating of BIDV to positive by global shifts in production location and demand following the coronavirus pandemic. 2021 marks the 16th consecutive year that BIDV has been reviewed by Moody’s. The bank is pioneering in this regard - confirming its commitment to financial transparency as well as compliance with international standards. Moody's has also taken rating actions on 14 other Vietnamese banks. Moody's revised the outlook for the long-term local and foreign currency deposit and issuer ratings of 5 banks to positive from negative, 4 banks to positive from stable and 6 banks to stable from negative.
On 18 March 2021, global rating agency Moody’s has changed the outlook for long-term rating of BIDV to positive from negative.
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ccording to Moody’s release, BIDV’s long-term deposits rating and issuer rating were affirmed at Ba3. BIDV’s issuer longterm rating is at the same level as Vietnam Government’s issuer rating. The rating actions follow Moody's change in rating outlook for Vietnam sovereign to positive from negative. Moody's rating action reflects signs of broad-based improvements in Vietnam's institutional, governance strength, sustained fiscal consolidation and potential improvements in economic strength that may strengthen Vietnam’s credit profile over time, especially as the economy may benefit from the macro changes accelerated
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Moody’s said Vietnam's sovereign credit strength is a key input in Moody's assessment of the deposit and issuer ratings of Vietnamese banks, because the country's credit strength affects the government's capacity to provide support to the banks in times of stress. Moody's revision of the outlook on Vietnam's Ba3 issuer rating to positive from negative signals the government's potentially higher capacity to provide extraordinary support to the banks. As a result, a potential upgrade of the sovereign rating - as indicated by the positive outlook - will likely result in upgrades of many Vietnamese banks, via the widening of the government support uplift.
