...State Support Drives IDR: The Long-Term 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' expectation that state support will be forthcoming, if needed, given the bank's systemic importance, quasi-policy functions and the state's controlling stake. However, the government's weak finances may constrain the timeliness of support given the large size of the banking industry relative to GDP. Moderating Credit Risks: Fitch believes Vietcombank has lower credit risks than other state- owned banks given its more conservative non-performing loan (NPL) classification standard and declining exposure to state-owned enterprises, which fell to 19.8% of total loans at end- 2016 (end-2015: 23%) as the bank diversified into higher-margin retail loans. Vietcombank's problem loan ratio, which includes "special mention" loans and NPLs sold to Vietnam Asset Management Company...
