The New York-headquartered financial services firm Standard & Poor’s said in a report given to The Saigon Times Daily that in August it revised Vietnam’s economic outlook to ‘BB-/Stable/B’ from ‘BB-/Negative/B’. “In line with this, we raised our ASEAN scale long-term rating on Vietnam to ‘axBB+’ from ‘axBB’,” said the report conducted in August. Standard & Poor’s... 

Fitch Ratings has affirmed that Vietnam-based Asia Commercial Bank (ACB) and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) both received ‘B’ ratings with a stable outlook in addition to ‘b’ Viability Ratings (VRs). The Issuer Default Ratings (IDRs) in the banks’ standalone financial profiles reflect the continuing risks of the challenging domestic operating conditions,... 

Local property developer Hoang Anh Gia Lai (HAGL) feels disgruntled by the credit-rating agency Fitch Ratings’ recent downgrade of its outlook to negative from stable. HAGL deputy general director Vo Truong Son told the Daily that Fitch’s rating did not sufficiently reflect the actual situation of the company. Fitch has also downgraded HAGL’s senior unsecured rating and its US$90-million bonds... 

The ratings agency said the revision “reflects the very limited fiscal space to absorb further adverse economic shocks in light of such elevated debt levels and a potentially weaker than currently forecast economic recovery”. The change represented a more than 50 percent chance of a downgrade over the next two years, Fitch said, citing ongoing financial tensions in the eurozone. “The... 

Easing inflation and improvements in the trade balance suggest that Vietnam’s economy is stabilising, but authorities need to double their commitment to the “Resolution 11″ policies to maintain this progress, Fitch Ratings has said. Resolution 11 is a package of measures adopted a year ago to help cool the overheating economy, which cut credit growth and encouraged broad money growth. The... 

Goldman Sachs Group Inc., Morgan Stanley and Deutsche Bank AG are among 13 financial institutions that submitted bids to advise Vietnam Joint Stock Commercial Bank for Industry & Trade on its planned $500 million overseas bond sale, according to Deputy General Director Le Duc Tho. Others that sent in bids include HSBC Holdings Plc, Standard Chartered Plc, Australia & New Zealand Banking Group... 

The agency has also assigned Viability Ratings to the banks. The four banks are Vietnam Bank for Agriculture and Rural Development (Agribank), Vietnam Joint-Stock Commercial Bank for Industry and Trade (Vietinbank), Asia Commercial Bank (ACB) and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank). At the same time, Fitch has assigned a Support Rating Floor of ‘B’ to Agribank,... 

Many banks are concerned about rising bad debts due to the economic situation and high interest rates. Some banks with a tradition of prudent credit management have revealed that since the end of last year their non-performing loans (NPLs) have increased by 0.5 per cent. Others admit to a rise of 1 per cent and even 2 per cent. In HCM City alone, NPLs rose to 4.2 per cent by April, 5.6 per cent for... 

Profit prospects are bleak in the banking sector Most banks saw their first-quarter profits soar year-on-year, but a more thorough analysis suggests those rosy figures may not be so positive. Notably, bank profits were ascribable mainly from surging credit liabilities, which come with huge risks. Credit expansion fueled profit The eight listed banks clocked up revenue and profit growth of more than... 

Local commercial joint stock banks are backing away from courting strategic foreign partners this year. Western Bank general manager Dang Duc Toan said it would be hard for his bank to sell its stake to foreign strategic partners this year as foreign banking institutions were also coping with post-financial crisis difficulties. “This time is not right for us to find foreign strategic partners, thus...