FITCH upgrades ACB's GSR to B+

(Ho Chi Minh City) – Recently, the international credit rating agency Fitch Ratings has adjusted to raise the Government support rating (GSR) of Asia Commercial Joint Stock Bank (ACB) from "B" to "B+". , and at the same time confirmed the Long-term Issuer default ratings (IDR) at BB-, stable outlook.

Fitch said that the upgrade of ACB's GSR rating comes in the context that the banking system has received a lot of positive support from the Government of Vietnam recently. The two-tier gap between GSR and country rating reflects the size of Vietnam's large banking system and the importance of ACB in the system.

Besides, the independent credit strength rating (Viability Rating - VR), which has boosted ACB's long-term IDR rating, is underpinned by ACB's risk management strategy, with asset quality. better than the industry as a whole. Specifically, ACB's bad debt was controlled at 1% of total outstanding loans, maintained at the lowest level in the whole banking system and bad debt coverage ratio (LLR) was high, 135%. A high NPL coverage ratio allows ACB to be more flexible in debt handling and improve asset quality without affecting the Bank's income.

Thanks to a healthy investment portfolio, excluding corporate bonds, and a small proportion of outstanding loans to real estate businesses, ACB is also less affected by recent adverse fluctuations in the real estate market. real estate and corporate bonds. Previously, as announced by Moody's, the issuer's credit rating and ACB's long-term bank deposit rating was BA3, obtained due to solid asset quality and good profitability.

Notably, Fitch Ratings upgraded ACB's income and profitability index from bb- to bb at a stable level. Fitch also expects ACB's key profitability ratios to remain among the highest among Fitch-rated banks in Vietnam, supported by low credit costs and strong growth in bancassurance. .

Fitch Ratings also upgraded capitalization and leverage from bb- to b+ at a stable level, ACB's Fitch Core Capital ratio is expected to remain above 12% in the medium term. term, based on the Bank's strong internal capital generation, is expected to outpace loan growth in the near term.

A new feature in Fitch's assessment this year is the ESG indicators - Environment, Society and Governance. Indicators such as governance structure, financial transparency of ACB show that ESG-related issues affect the Bank's credit rating. In the coming time, ESG will be a key topic deployed by the Bank to demonstrate the Bank's commitment to sustainable development.

For more information about ACB, please visit acb.com.vn; or to ACB branches/transaction offices nationwide; or contact Contact Center 24/7: 028 38247247