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Moody's corrects the long-term counterparty risk assessment of Techcombank
Moody's has corrected the long-term counterparty risk assessment (CR Assessment) of Vietnam Technological and Commercial Joint Stock Bank (Techcombank) to B2(cr).
RATINGS RATIONALE
The change to the long-term CR Assessment does not impact the B2 long-term deposit and issuer ratings assigned to Techcombank.
In line with Moody's Banks methodology published in March 2015, Techcombank's CR Assessment — prior to government support — is positioned one notch above the adjusted BCA of b3. Moody's then applies government support assumptions for the CR Assessment, in line with the same support assumptions as for the long-term deposits and issuer ratings.
For the rating action on 8 October 2015 on Techcombank, where the BCA of the bank was upgraded to b3 from caa1, the scorecard setting for "dependence" used to model government support for the CR Assessment was positioned incorrectly. The application of the correct "dependence" setting of "very high" in the scorecard for Techcombank results in a long-term CR Assessment of B2(cr), as opposed to B1(cr) under the incorrect setting. The correction leads to no government support uplift for the CR Assessment.
The principal methodology used in this rating was Banks published in March 2015. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
REGULATORY DISCLOSURES
For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.
Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.
Please see Moody's Ratings Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the time horizon in which a credit rating action may be after a review or outlook action took place.
Please see the ratings tab on the issuer page on www.moodys.com for the last action and the history of the rating. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com/disclosures for further information.
Please see the ratings disclosure page on www.moodys.com/disclosures for disclosures on significant Moody's shareholders and on certain relationships between Moody's, its shareholders and/or rated issuers.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
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