VCB ratings unaffected: S&P

Standard & Poor's Ratings Services said today that its ratings on Bank for Foreign Trade of Vietnam (Vietcombank; BB-/Negative/B) are unchanged following the bank's capital and business alliance with Mizuho Corporate Bank Ltd. (MCB; A+/Stable/A-1).

* Mizuho to buy 15 pct of VCB for $567 mln

The alliance could also provide Vietcombank with an enhanced products and services offering, and accelerate the alignment of the bank's risk management system and processes with international best practices.

However, in our opinion, the alliance may face some difficulty in execution, given the difference in risk culture and operating norms in the two organizations.

As part of the alliance, MCB will subscribe to 15% of Vietcombank's shares through a private placement of equity. The alliance will also involve provision of technical support, mutual cooperation, and opportunities for business partnerships with all Mizuho Financial Group companies.

The transaction is subject to regulatory approval and the capital infusion is likely by the first quarter of 2012.

Reuters

>   Mizuho to buy 15 pct of VCB for $567 mln (01/10/2011)

>   ABBank allowed to increase charter capital (29/09/2011)

>   VCB says Mizuho to buy 15% stake for $570 million (27/09/2011)

>   Current factors back up M&A market (26/09/2011)

>   VC9: Capital increase solution (27/09/2011)

>   HBB: Change in Company’s charter capital (22/09/2011)

>   4 foreign banks' branches to raise chartered capital (15/09/2011)

>   VPBank allowed to increase charter capital (13/09/2011)

>   VPBank allowed to increase charter capital (13/09/2011)

>   GLT: Dividend payment date notice (06/09/2011)