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 (CR) Assessment to Ba2(cr). The ratings agency also changed SeABank's outlook to Positive from Stable, while maintaining the bank's Ba3 Long-term bank deposit and issuer ratings.
The upgrade reflects SeABank's strengthened intrinsic credit profile, according to Moody's. The BCA and Adjusted BCA were raised from B1 to Ba3, indicating that the bank's solvency profile has improved, supported by stable asset quality, stronger capital, and better risk management. Moody's expects the bank's credit profile to benefit from ongoing efforts to diversify its funding base and improve funding stability over the next 12–18 months.
The upgrade of SeABank's Long-term foreign and local currency counterparty risk ratings to Ba2 and the CR Assessment to Ba2(cr) demonstrates a positive assessment of the bank's ability to meet its financial obligations to counterparties. These upgrades reinforce SeABank's reputation in the financial market and enhance its ability to expand partnerships and access funding from domestic and international financial institutions.
Moody's also noted that SeABank's asset quality remained broadly stable, with its 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. Furthermore, 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.
The agency also highlighted SeABank's growing access to long-term funding from development financial institutions, which will further enhance the stability of its funding structure, mitigate refinancing risks, and support sustainable growth in the years ahead. Moody's believes SeABank has the potential for a one-notch rating upgrade if Vietnam's sovereign rating is upgraded in the future.
This rating action matters because it signals improved financial health and stability for SeABank, potentially lowering its borrowing costs and expanding its access to capital markets. For the banking industry in Vietnam, it reflects a positive trend in credit quality and risk management among local lenders. Customers and investors may view the upgraded ratings as a sign of reliability, which could strengthen SeABank's competitive position. The positive outlook also suggests that further upgrades are possible, contingent on broader economic conditions and sovereign creditworthiness.
For more information, visit SeABank's website at https://seabank.com.vn/.
