Fitch Ratings upgrades MB's international credit rating

November 24, 2022 | 11:53

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On November 17, international rating agency Fitch Ratings announced its annual credit rating results for 2022, in which MB's long-term debt issuer credit rating (IDR) was upgraded from B+ to BB-, with a Positive outlook.

According to Fitch Ratings, MB's credit rating upgrade comes from internal factors such as profitability, improved asset quality, and the bank's drastic digital transformation. In addition, Fitch assessed that MB, along with the entire Vietnamese banking system, has benefited from the government’s active support in recent years.

Therefore, as Vietnam's national credit rating was recently upgraded from BB- to BB with a Positive outlook, the probability of MB receiving government support is raised from B to BB- with an equivalent Positive outlook.

In the first 9 months of the year, Vietnam's GDP grew by 8.8 per cent as the economy recovered and exports grew strongly. Fitch Ratings expects Vietnam's GDP growth to be above 6 per cent in the 2023-2024 period, although external uncertainties and monetary tightening could pose a downside risk.

On this basis, Fitch Ratings assessed that in the next 12-18 months, MB's asset quality and profitability will continue to be supported by Vietnam's sustainable economic growth.

This upgrade contributes to reaffirming MB's safe and sustainable operation after 28 years of presence in the financial and banking market in Vietnam.

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