A BIDV branch in Ha Noi. BIDV’s long-term issuer credit rating has been improved by one notch to BB- by Standard & Poor’s. — Photo bidv.com.vn

Global ratings agency Standard & Poor’s has upgraded the long-term issuer credit rating of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) by one notch from B+ to BB- and kept the outlook “stable”.

It said the rating action follows its upgrade of Viet Nam's sovereign credit rating to 'BB/B' from 'BB-/B', reflecting BIDV's high systemic importance to the country’s banking system.

BIDV is the largest bank by total assets in Viet Nam with a dominant market share of 14 per cent of loans and 13 per cent of deposits.

It enjoys a high degree of customer confidence due to its size, long operating history, and government ownership.

Its management has recognised the need for capital conservation to support its financial profile and meet more stringent Basel II capital standards in 2020.

The “stable” outlook reflects S&P’s expectation that BIDV will maintain its strong franchise and satisfactory profitability, while pursuing capital-enhancement measures over the next 12 to 18 months. — VNS