Vietcombank's counterparty credit rating outlook cut to negative - S&P

Saturday, May 3, 2008
Standard & Poor's Ratings Services said it cut the outlook on its counterparty credit rating on Bank for Foreign Trade of Viet Nam (Vietcombank) to negative from stable and affirmed the counterparty credit rating at 'BB/B' following the revision on the outlook for the sovereign credit rating on Viet Nam.
The ratings agency said the action reflects the bank's systemic importance in the Viet Nam banking system such that its ratings would qualify for a two-notch uplift from its standalone rating of 'B+'.
However, the counterparty credit rating on Vietcombank would move downward with the sovereign credit rating as implicit government support cannot raise the rating on the bank above the foreign currency sovereign rating, the ratings agency said. (Thomson Financial)