... Issuer Default Rating (IDR) of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is one notch lower than that of Vietnam (BB-/Stable). This reflects Fitch Ratings' view that the state's ability to provide timely support would be constrained by its own weak finances and a large banking system relative to GDP. However, Fitch believes the state's propensity to support is strong, due to Vietcombank's high systemic importance, majority state-ownership and quasi-policy functions. Asset-Quality Risks: Vietcombank faces high systemic asset-quality risks ¡ similar to other state-owned banks ¡ given its high exposure to state-owned enterprises, which formed 28% of gross loans at end-2014. Problem loans ¡ including loans classified as "special mention" or weaker and special bonds issued by the Vietnam Asset Management Company ¡ reduced to 7% of gross loans at end-June 2015 (end-2014: 8.3%). Capitalisation Weaker than Reported: The...
