Moody’s upgrades Sacombank’s credit rating outlook to positive

International credit rating agency Moody’s has recently adjusted the credit rating outlook of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) from “stable” to “positive”.

This adjustment reflects Moody’s assessment of the continuous improvement of Sacombank’s credit capacity through the handling of bad debts and the disposal of non-performing assets. In addition, Sacombank’s asset risk rating has been upgraded from Caa1 to B3.

Moreover, Moody’s said Sacombank has the smallest interbank funding dependence ratio among the rated banks.

It also reaffirmed Sacombank’s long-term deposit and issuer ratings at B3 thanks to the bank’s efforts in carrying out its restructuring strategy. The agency made positive predictions about Sacombank’s potential upgrade within the next 12-18 months.

At the annual general meeting of shareholders held the same day, Sacombank updated its quarterly business performance for Q1. Accordingly, its pre-tax profit hit over 2.38 trillion VND (100 million USD), up 49.9% annually and reaching 25% of the annual plan. The rate of its bad debts stood at 1.11%.

This year, the lender targets a growth of 11% in its equity to 657.8 trillion VND and the rate of bad debts below 2%./.

Source: Vietnam News Agency