Moody's maintains Ba3 rating and 'Stable' outlook for SeABank

Moody's assessment amid market volatility

On September 7, Moody’s released its 2024 credit rating assessment for Southeast Asia Commercial Joint Stock Bank (SeABank, HOSE: SSB). The ratings agency reaffirmed SeABank’s long-term deposit rating at Ba3, maintaining its Baseline Credit Assessment (BCA) at B1, with a stable outlook for future development.

In light of the volatile domestic and international markets and the significant challenges facing the Vietnamese banking sector, Moody’s ratings underscore SeABank’s above-average capital ratios and stable asset quality. Additionally, Moody’s assigned a "Stable" outlook to SeABank, anticipating that the bank will sustain its liquidity and long-term solvency metrics.

Moody’s decision to uphold SeABank’s long-term deposit rating at Ba3, one notch below Vietnam’s sovereign rating of Ba2 (with a "Stable" outlook), reflects the expectation of timely government support if needed.

In 2022, SeABank’s ratings were upgraded by Moody’s from B1 to Ba3 across key categories, with the BCA raised from B2 to B1. Since then, the bank has consistently maintained these ratings, affirming its credibility, market position, and strength among clients, partners, and particularly international institutions. This stability also highlights SeABank's proactive, transparent, safe, and sustainable approach to business management and operations, meeting the highest international standards.

Recent capital increases and growth strategies

Recently, SeABank has continually bolstered its capital through various means, including issuing shares for dividend payments, increasing charter capital from equity, and implementing an Employee Stock Ownership Plan (ESOP), to meet its current growth objectives.

These efforts have laid the foundation for SeABank to enhance its competitiveness, invest in technology, drive development, strengthen its financial capacity, and improve customer experiences. Currently, SeABank’s charter capital stands at VND 24,957 billion and is set to increase to VND 28,350 billion after completing the issuance of 329 million shares for the 2023 dividend payment and an additional 10.3 million shares to increase equity, equivalent to a total increase of nearly 13.6%.

Notably, SeABank has successfully raised foreign capital totaling USD 850 million from leading global financial institutions such as IFC, DFC, AIIB, and Norfund. This capital is intended to support sustainable development goals, small and medium enterprises (SMEs), women-led businesses, and individual customers, with a focus on inclusive finance and climate finance.

SeABank also pioneered the use of innovative financial instruments by issuing Vietnam’s first blue bonds and becoming the first private commercial bank in the country to issue green bonds to international financial institutions, IFC and AIIB, with a total value of USD 150 million.

The bank’s ongoing success in securing international capital from top global financial institutions demonstrates its operational efficiency, effective use of capital to support customers, and the continuous enhancement of its brand reputation to international standards.

With the goal of promoting green growth and financial inclusion, SeABank remains committed to increasing its capital base and improving relevant indicators, aiming to become a leading bank in supporting Vietnamese enterprises to expand, fostering green finance and credit activities, and financing environmentally-friendly projects, thereby contributing to a sustainable economy.

Source: theleader

Compiled by Vietnam Business Information