Standard Chartered Bank Vietnam has announced that it has obtained a first-time rating from Fitch at BB and BBB- for its long-term issuer default foreign currency rating and local currency rating respectively. The outlooks on these ratings are stable.
|These ratings are capped by Fitch’s country ceiling of BB for Viet Nam and would typically represent the highest possible rating for a bank operating in Viet Nam. - Photo thitruongtaichinhtiente.vn |
Fitch’s ratings are driven by its expectation of support from the UK-based parent, Standard Chartered PLC, for the Vietnamese subsidiary which the group fully owns. These ratings are capped by Fitch’s country ceiling of BB for Viet Nam and would typically represent the highest possible rating for a bank operating in Viet Nam.
According to the global ratings agency, the risk of sovereign restrictions on local-currency repayments is lower than that of foreign-currency restrictions. Hence, Standard Chartered Bank Vietnam's Long-Term Local-Currency issuer default rating (IDR) is rated above Viet Nam’s sovereign rating at BBB- and reflects the parent's robust ability to provide support.
“Viet Nam is an important market of Standard Chartered, where we have been present for over 115 years. We have been and continue investing in the country to grow the franchise and better support our clients.
"Given Viet Nam's increasing integration into regional and global supply chains, we believe that we can help the country make a difference by leveraging on our unrivalled local knowledge and international expertise to connect Viet Nam with the world and vice versa.
"The ratings from Fitch have reaffirmed us as a strong partner to Vietnam and to our clients as they seek to meet their growth ambitions,” said Nirukt Sapru, CEO, Viet Nam and ASEAN & South Asia Cluster Markets, Standard Chartered Bank.