Moody's Ratings has upgraded several key credit ratings for Southeast Asia Commercial Joint Stock Bank (SeABank, HOSE: SSB), including the Baseline Credit Assessment (BCA) to Ba3, the Long-term Counterparty Risk Ratings (CRRs) to Ba2, and the Long-term Counterparty Risk Assessment to Ba2(cr). The agency maintained SeABank's Ba3 long-term bank deposit and issuer ratings while changing the outlook to Positive from Stable.
The upgrade of SeABank's BCA and Adjusted BCA from B1 to Ba3 reflects Moody's view that the bank's solvency profile has strengthened, supported by stable asset quality and stronger capital and risk management. The change in outlook to Positive from Stable for the Ba3 long-term deposit and issuer ratings signals potential further upgrades if the bank continues to improve its credit profile.
Moody's also upgraded SeABank's long-term foreign and local currency counterparty risk ratings to Ba2 and the long-term counterparty risk assessment to Ba2(cr). These upgrades demonstrate a positive assessment of the bank's ability to meet financial obligations to counterparties, reinforcing SeABank's reputation and its capacity to expand partnerships and access funding from domestic and international financial institutions.
The agency expects SeABank's credit profile to benefit from ongoing efforts to diversify its funding base and improve funding stability over the next 12-18 months. Moody's also believes SeABank has potential for a one-notch rating upgrade if Vietnam's sovereign rating is upgraded in the future.
According to the report, SeABank's asset quality remained broadly stable, with the non-performing loans ratio maintained at an appropriate level. New delinquencies are expected to remain low over the next 12-18 months, underpinned by a supportive operating environment and the bank's adequate track record in asset quality management.
Moody's expects SeABank to maintain a solid capital position, with its tangible common equity to risk-weighted assets ratio remaining above 12%, in line with domestic peers. Additionally, SeABank's growing access to long-term funding from development financial institutions will further enhance funding stability, mitigate refinancing risks, and support sustainable growth in the years ahead.
For more information, visit SeABank's website.
