In its report, Moody’s upgraded TCB’s long-term local currency deposit and local- and foreign-currency issuer ratings to B1 from B2, and confirmed the Bank’s foreign currency deposit rating at B2, which is now constrained only by Vietnam’s country rating ceiling of B2.[1]
Further, Moody’s upgraded Techcombank’s Baseline Credit Assessments (BCA) to b1 from b2 based on improvements to a number of metrics that demonstrate Techcombank’s solvency, primarily, the Bank’s strong capital position, the quality of its assets and its profitability.
Following a recent injection of over USD 370 million in capital, among other transactions, Moody’s estimates that the Bank’s TCE/RWA[2] increased to 14.5%, from 9.0% in 2016, providing Techcombank with the “largest core capital buffer[3] amongst the 16 Moody’s-rated banks in Vietnam.”
Moody’s noted that the Bank’s “stock of gross problem assets decreased 37% in 2017.” Techcombank was one of the few commercial banks in Vietnam to complete the recovery and settlement of overdue debts sold to Vietnam Asset Management Company in 2017.  
S&P revised its rating on the Bank’s capital and earnings, from ‘weak’ to ‘moderate’, following the Bank’s improved capital position, which is the highest assessment among all Vietnamese banks rated by S&P.
In September 2017, S&P assigned the Bank a sovereign rating with ‘BB-’ long-term and ‘B’ short-term issuer credit ratings and with a ‘stable’ outlook.  S&P reaffirmed these ratings and outlook in its April 5, 2018 report, and noted that the ratings were given because the Bank has a “good franchise, particularly in the retail and small and midsize enterprises (SME) segments, and its funding profile”, and that it “will maintain its status as a leading privately owned bank in Vietnam over the next 12-18 months with a deep-rooted retail franchise and above-average profitability.”

The upgrades from both Moody’s and S&P come as Techcombank approaches the mid-point of its 5-year transformation strategy (2016-2020), which seeks to position Techcombank as the number one bank in Vietnam, through its focus on customer centricity and business sustainability, with a balanced approach toward profit enhancement and risk-taking.
About Moody’s
Moody's Investors Service, Inc. provides credit rating, research, and risk analysis services. Its ratings and analysis track debt covering various countries, corporate issuers, public finance issuers, and structured finance obligations. The company’s services help investors to analyze the credit risks associated with fixed-income securities. Incorporated in 1914, Moody's Investors Service, Inc. operates as a subsidiary of Moody's Corporation.
About Standard & Poor’s
S&P Global Ratings and its predecessor organizations have been in business for more than 150 years. S&P is the world’s leading provider of credit ratings, which are essential to driving growth, and providing market transparency. Operating in 26 countries around the globe, their analysts, managers and economists assess the factors and trends that affect creditworthiness.
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[1] It is either extremely rare or not possible for banks and other companies to receive ratings higher than that of their home country.
[2] Tangible common equity/Risk weighted assets.
[3] The mandatory capital that financial institutions are required to hold.