Saigon - Hanoi Commercial Joint Stock Bank: Update following upgrade to B1, outlook change to positive - Moody's Global Credit Research

Saigon - Hanoi Commercial Joint Stock Bank: Update following upgrade to B1, outlook change to positive

Saigon - Hanoi Commercial Joint Stock Bank: Update following upgrade to B1, outlook change to positive - Moody's Global Credit Research
Saigon - Hanoi Commercial Joint Stock Bank: Update following upgrade to B1, outlook change to positive
Published May 19, 2022
11 pages (5664 words) — Published May 19, 2022
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Brief Excerpt:

...Saigon - Hanoi Commercial Joint Stock Bank's (SHB) B1 long-term deposit and issuer ratings reflect improvements in SHB's asset quality after it wrote off its Vietnam Asset Management Company (VAMC) bonds in 2021, higher capital and improving profitability because of lower credit costs. We expect SHB's asset quality to remain stable over the next 12-18 months, particularly as economic activities rebound in Vietnam, which will support borrowers' debt repayment capacity. SHB's funding and liquidity are moderate. The positive outlook on the ratings reflects our expectation of further improvement in SHB's credit profile, driven by improvements in capital as it seeks to raise new capital from existing shareholders and through stake sale to foreign strategic investors. SHB's B1 deposit and issuer ratings are one notch higher than its b2 Baseline Credit Assessment (BCA) because of our expectation of moderate level of support from Government of Vietnam (Ba3 positive)....

  
Report Type:

Credit Opinion

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Saigon - Hanoi Commercial Joint Stock Bank
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Saigon - Hanoi Commercial Joint Stock Bank: Update following rating affirmation, outlook changed to stable - Credit Opinion – 2023/04/25 – US$ 250.00 – ...Saigon - Hanoi Commercial Joint Stock Bank's (SHB) B1 deposit and issuer ratings are one notch higher than its b2 Baseline Credit Assessment (BCA) because of our expectation of a moderate level of support from the Government of Vietnam (Ba2 stable). The B1 ratings reflect our view that while SHB's capital will improve further, supported by proceeds from the sale of SHB Finance, it will remain at a modest level compared with that of its peers. Nonetheless, the improved capital will help offset pressure on the bank's credit profile arising from greater asset risks and weaker profitability over the next 12-18 months. We expect SHB's funding and liquidity to remain broadly stable over the next 12-18 months. On 19 April 2023, we affirmed the B1 long term foreign and local currency bank deposits and issuer ratings, and changed the rating outlook to stable from positive. We also affirmed the bank's b2 Baseline Credit Assessment (BCA) and adjusted BCA....

Moody's affirms Saigon - Hanoi Commercial Joint Stock Bank's B1 ratings, changes outlook to stable from positive - Rating Action – 2023/04/19 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Saigon - Hanoi Commercial Joint Stock Bank: Update following rating action - Credit Opinion – 2022/09/23 – US$ 250.00 – ...On 7 September 2022, we affirmed Saigon - Hanoi Commercial Joint Stock Bank's (SHB) B1 long-term deposit and issuer ratings. We also upgraded SHB's long term counterparty risk assessment (CRA) to Ba3(cr) from B1(cr) and its LC and FC long term counterparty risk rating (CRR) to Ba3 from B1. The outlook, where applicable, remains positive. SHB's B1 deposit and issuer ratings are one notch higher than its b2 Baseline Credit Assessment (BCA) because of our expectation of moderate level of support from Government of Vietnam (Ba2 stable). The B1 ratings reflect improvements in asset quality after the bank wrote off the Vietnam Asset Management Company (VAMC) bonds in 2021 and its improving capital and profitability helped by lower credit costs. We expect SHB's asset quality to remain stable over the next 12-18 months, as economic activities rebound in Vietnam, which will support borrowers' debt repayment capacity. SHB's funding and liquidity are moderate. The positive rating outlook reflects...

Moody's upgrades Saigon-Hanoi Joint Stock Bank's ratings; changes outlook to positive - Rating Action – 2022/04/29 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Saigon - Hanoi Commercial Joint Stock Bank: Update following H1 2021 results - Credit Opinion – 2021/10/05 – US$ 250.00 – ...Saigon - Hanoi Commercial Joint Stock Bank's (SHB) B2 long-term deposit and issuer ratings reflect the bank's b3 Baseline Credit Assessment (BCA) and a one-notch uplift based on our assessment of a moderate probability of support from the Government of Vietnam (Ba3 positive) in times of need. Our assessment of a moderate probability of government support takes into consideration the bank's modest share of 3% each in system assets and system deposits as of the end of March 2021. SHB's b3 BCA takes into consideration its thin loss-absorbing buffers against rising asset risks because of the coronavirus pandemic. The bank has been making steady progress in resolving its legacy problem assets, but we expect credit costs to continue weighing on its profitability until its problem assets are fully resolved. SHB's funding and liquidity are moderate. In August 2021, SHB announced an agreement with Bank of Ayudhya (BAY, Baa1 stable, baa3) to sell a 100% equity stake in SHBANK Finance Company Limited...

Moody's assigns B2 rating to Saigon - Hanoi Commercial Joint Stock Bank's MTN drawdown - Rating Action – 2021/09/28 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Saigon - Hanoi Commercial Joint Stock Bank: Update following 9M 2020 results - Credit Opinion – 2020/12/18 – US$ 250.00 – ...Saigon - Hanoi Commercial Joint Stock Bank's (SHB) B2 long-term deposit and issuer ratings reflect the bank's b3 Baseline Credit Assessment (BCA) and a one-notch uplift based on our assessment of a moderate probability of support from the Government of Vietnam (Ba3 negative) in times of need. Our assessment of a moderate probability of government support takes into consideration the bank's modest share of 3% each in system assets and system deposits as of the end of June 2020, as well as the history of regulatory forbearance in Vietnam. SHB's b3 BCA takes into consideration the steady improvements made by the bank in resolving its legacy problem assets, offset by rising asset risks as a result of the ongoing coronavirus pandemic and the bank's thin loss-absorbing buffers. SHB's profitability is weak because high credit costs continue to weigh on its top-line revenue. The bank's funding and liquidity are moderate....

Saigon - Hanoi Commercial Joint Stock Bank: Update following ratings confirmation - Credit Opinion – 2020/07/28 – US$ 250.00 – ...On 22 July 2020, we confirmed the long-term ratings and assessments of Saigon - Hanoi Commercial Joint Stock Bank (SHB) with a stable outlook. The rating action concludes the review for downgrade of the bank's ratings and assessment, initiated on 7 April 2020. SHB's B2 deposit and issuer ratings reflect the bank's b3 Baseline Credit Assessment (BCA) and a one-notch uplift based on our assessment of a moderate probability of support from the Government of Vietnam (Ba3 negative) in times of need. Our assessment of a moderate probability of government support takes into consideration the bank's modest share of 3% each in system assets and system deposits as of the end of March 2020, as well as the history of regulatory forbearance in Vietnam. The confirmation of SHB's b3 BCA takes into consideration the steady improvements made by the bank in resolving its legacy problem assets, although offset by risks posed by the coronavirus pandemic to the debt repayment capacity of the bank's borrowers....

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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Cite this Report

  
MLA:
Moody's Global Credit Research. "Saigon - Hanoi Commercial Joint Stock Bank: Update following upgrade to B1, outlook change to positive" May 19, 2022. Alacra Store. Mar 29, 2024. <http://www.alacrastore.com/moodys-credit-research/Saigon-Hanoi-Commercial-Joint-Stock-Bank-Update-following-upgrade-to-B1-outlook-change-to-positive-PBC_1324591>
  
APA:
Moody's Global Credit Research. (). Saigon - Hanoi Commercial Joint Stock Bank: Update following upgrade to B1, outlook change to positive May 19, 2022. New York, NY: Alacra Store. Retrieved Mar 29, 2024 from <http://www.alacrastore.com/moodys-credit-research/Saigon-Hanoi-Commercial-Joint-Stock-Bank-Update-following-upgrade-to-B1-outlook-change-to-positive-PBC_1324591>
  
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