Moody’s reviews to downgrade ACB’s rating

19-Apr-2012 Intellasia | Vietstock | 11:10 AM Print This Post

Moody’s on April 18 put the credit rating of Asia Commercial Joint Stock Bank (HNX-listed ACB) in its review for downgrade due to the ACB’s independent credit rating is higher than the credit rating of Vietnam. Moody’s expects to complete the review process within three months.

Particularly, Moody’s has put the rating of ACB’s long term deposit and issuance in local currency (currently at Ba3) and the Banking and Finance Strength Rating (BFSR-currently at D) in its review for the downgrade. Other ratings such as long term issuance rating in foreign currency (at B1), long term deposit rating in foreign currency (at B2) and short term credit rating remained unchanged.

Reportedly, currently Vietnam’s credit rating in local and foreign currency is rated at “B1″ with “negative outlook” by Moody’s.

Moody’s notice reflected the modification of its assessment on the relationship between national credit ratings and credit ratings of financial institutions worldwide. Moody’s issues are detailed in the guide “How does the quality of national credit influence other ratings” published on February 13, 2012.

Accordingly, Moody’s said that independent credit rating of most banks across the globe must be equal (or lower) against the credit rating of the country where those banks are operating.

Together with ACB, Moody’s also put credit rating of ACLEDA Bank Plc and Cambodian Public Bank (Cambodia) and Bank of the Philippine Islands (Philippines) in its review for the downgrade for the same reason.

 


Category: Finance

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