FITCH UPGRADES ACB’S GOVERNMENT SUPPORT RATING TO 'BB-'

In addition, ACB’s operating environment score was lifted to 'bb'/stable from 'bb-'/positive due to the upgrade of capital, liquidity and corporate profile scores to bb. That means ACB’s liquidity is stable, financial performance is good and strategy is consistent.

Fitch pointed out that ACB's NPL ratio remained below the industry average, reflecting ACB's better-than-peer credit standards and low level of exposure to property developers. The agency expects ACB’s asset-quality metrics to remain steady over the next 12-18 months amid a stronger economic recovery.

“ACB has the highest capital buffers among locally rated peers. We expect its capital position to continue to improve on sustained internal capital generation that will likely continue to exceed growth in risk-weighted assets.”, Fitch added.

In November, 2023, the agency affirmed ACB’s Long-Term Issuer Default Rating (IDR) at 'BB-'. The Outlook on the IDR is Stable.

ACB is one of the five banks in Vietnam having their scores upgraded in the latest rating by Fitch. The upgrade of ACB’s GSR and Vietnam’s sovereign rating shows the agency’s recognition of the scale of Vietnam's banking system and ACB’s position.

See full Rating action commentary of ACB by Fitch Ratings here