Outlooks on Vietinbank and BIDV revised to stable on sovereign outlook change; ratings affirmed

Standard & Poor's Ratings Services today revised the outlooks on Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and Bank for Investment and Development of Vietnam (BIDV) to stable from negative. At the same time, Standard & Poor's affirmed its 'B+/B' issuer credit ratings on both the banks. We also revised the ASEAN scale ratings on BIDV to 'axBB/axB' from 'axBB-/axB'.

* Vietnam outlook revised to stable from negative; 'BB-/B' sovereign ratings affirmed

We revised the outlook on the two banks following a similar sovereign rating
action on Vietnam (BB-/Stable/B; axBB+/axB) earlier today.

The ratings on Vietinbank and BIDV are one notch above the banks' respective
stand-alone credit profiles, reflecting: (1) the banks' "high systemic
importance" in Vietnam's banking system; and (2) our assessment of a "highly
supportive" government, which qualifies for a one-notch rating uplift from the
banks' stand-alone credit profile of 'b'.

Standard & Poor's

>   Vietnam outlook revised to stable from negative; 'BB-/B' sovereign ratings affirmed (06/06/2012)

>   SBV Project on boosting non-cash payment in Vietnam in 2011-2015 period (06/06/2012)

>   It’s not easy to buy bad debts (06/06/2012)

>   Dong/dollar exchange rate fluctuates in short term, but stabilizes in long term (06/06/2012)

>   Dong depreciates against US dollar (06/06/2012)

>   State Bank prepares regulations on bank restructuring (06/06/2012)

>   Vietnam to lift foreign ownership ratio limit in Vietnamese banks (05/06/2012)

>   WB to lend $4.2bln to Vietnam (04/06/2012)

>   SBV moots measures to inject capital into the economy (04/06/2012)

>   State may cap interest at 9% (04/06/2012)