Moody’s Investor Service has changed the outlook on the Sai Gon - Ha Noi Joint Stock Bank (SHB)’s rating from stable to positive, reflecting the improvements to the bank’s credit profile and capital.

The rating agency also changed SHB’s long-term deposit and issuer ratings from B1 to B2 as a result of upgrades in the bank’s Baseline Credit Assessment (BCA) and Adjusted BCA from B2 to B3.

Moody’s said the upgrades were made to reflect SHB’s better asset quality after it managed to handle the Vietnam Asset Management Company (VAMC)’s bonds and Vinshin’s bonds ahead of schedule.

Other rationales behind the upgrades were SHB's higher capital following the capital raise from its shareholders in 2021 and its improving profitability because of lower credit costs.

Notably, SHB's market cap hit VND59,471 billion (US$2.6 billion) by late 2021, ranked 9th among joint-stock commercial banks with the largest market cap in Viet Nam.

The bank also rose to VND26,674 billion in chartered capital and VND506.6 trillion in total asset during the period.

Moody's said the ratings could be upgraded further if the bank continues to strengthen its capital while maintaining its asset quality and profitability. — VNS