Shinhan Vietnam Bank Achieves Highest Credit Rating Among Vietnamese Banks

[Asia Economy Reporter Haeyoung Kwon] Shinhan Vietnam Bank announced on the 16th that it has obtained a 'BB rating (stable outlook)' from the international credit rating agency Standard & Poor's (S&P), which is the same as Vietnam's sovereign credit rating. With this, Shinhan Vietnam Bank not only holds the highest credit rating among banks in Vietnam according to S&P standards but is also the only bank to receive a credit rating identical to the country's sovereign credit rating.

Shinhan Vietnam Bank plays an essential role in Shinhan Financial Group's overseas business expansion strategy and has been recognized for its very high strategic importance within the group.

Initially, S&P assigned Shinhan Vietnam Bank a long-term credit rating of A, similar to the A+ rating, considering the group's stable support. However, taking into account S&P's credit rating methodology, which restricts individual corporate credit ratings from exceeding the sovereign credit rating of their location, the credit rating was lowered. Accordingly, it is expected that if Vietnam's sovereign credit rating is upgraded, Shinhan Vietnam Bank's credit rating will also be upgraded simultaneously.

A representative from Shinhan Vietnam Bank stated, "As major Vietnamese banks implement Basel II and the local financial market advances, interest in the soundness and stability of banks is increasing," adding, "By obtaining the highest level of credit rating, Shinhan Vietnam Bank has become a bank that can be more trusted by customers and investors."

Established in 2009, Shinhan Vietnam Bank has grown into the largest foreign bank in Vietnam with total assets of $4.45 billion and 36 branches as of the end of last year, based on active localization and the acquisition of ANZ Vietnam's retail division in 2017. In October last year, it became the first foreign bank to complete Basel II implementation and was recognized by the State Bank of Vietnam for its risk management capabilities.

This content was produced with the assistance of AI translation services.