Moody's Upgrades SeABank's Ratings, Reflecting Vietnam's Financial Sector Stability

International rating agency Moody's Ratings has upgraded several credit ratings for Southeast Asia Commercial Joint Stock Bank (SeABank) and revised its outlook from 'Stable' to 'Positive', reflecting improvements in the bank's financial strength and risk management. In its latest credit rating report, Moody's upgraded SeABank's Baseline Credit Assessment (BCA) and Adjusted BCA to Ba3. The long-term Counterparty Risk Ratings (CRRs) were raised to Ba2, and the long-term Counterparty Risk Assessment (CR) to Ba2(cr). Concurrently, long-term deposit and issuer ratings were affirmed at Ba3, with the outlook revised to 'Positive' from 'Stable'. According to Moody's, the upgrade of the BCA and Adjusted BCA reflects SeABank's improved intrinsic credit strength, driven by stable asset quality, a strengthened capital base, and enhanced risk management capabilities. The agency expects SeABank to further improve its credit profile over the next 12-18 months through efforts to diversify funding sources and increase the stability of its funding structure. Moody's also indicated that SeABank's ratings could be further upgraded if Vietnam's sovereign credit rating improves. The report also noted that SeABank's asset quality continues to remain stable. The non-performing loan ratio is controlled, and new overdue loan ratios are expected to remain low in the next 12-18 months due to a favorable operating environment and effective asset management. Furthermore, Moody's forecasts that SeABank's capital base will remain relatively robust, with a tangible common equity to risk-weighted assets (TCE/RWA) ratio above 12%, comparable to banks with similar credit ratings. The report states that SeABank's expanded access to medium and long-term capital from development finance institutions will contribute to greater funding stability, reduce refinancing risks, and build a foundation for future growth.