Moody’s Upgrades MSB’s Credit Rating

The banking outlook remains Stable, reflecting expectations that MSB’s credit fundamentals will remain steady over the next 12–18 months.

According to Moody’s updated report, the new methodology highlights several positive factors supporting MSB’s credit rating. For instance, Moody’s now prioritizes long-term solvency and stable profitability over liquidity size, as seen in the previous methodology. The bank’s strengthened capital base and buffers effectively mitigate credit risks. Additionally, the new model considers business model diversity in risk assessment and incorporates qualitative criteria, further enhancing MSB’s position.

MSB’s Capital score has improved, thanks to its recent practice of paying dividends in stock, which bolsters its capital buffer. The tangible common equity to risk-weighted assets (TCE/RWA) ratio stood at 12.7% as of June 30, 2025, placing it among the industry’s highest. The bank’s high-quality liquid assets, such as government bonds, positively influence its liquidity rating. Moreover, MSB’s Environmental, Social, and Governance (ESG) considerations, rated at CIS-3, indicate that ESG-related risks have minimal impact on its current credit rating.

In an era of stricter evaluation standards, MSB’s simultaneous improvement across multiple credit matrix categories demonstrates its financial foundation not only meets new standards but also excels in several areas compared to industry benchmarks.

Over the past few years, MSB has focused on strengthening capital safety and liquidity, ensuring resilience amid economic fluctuations. The Capital Adequacy Ratio (CAR) consistently exceeds 12%, surpassing the State Bank’s 8% requirement and aligning with the bank’s balance sheet scale. As of September 30, MSB’s non-performing loans (NPL) were at 1.9%, the loan-to-deposit ratio (LDR) decreased from 73.91% in Q2 to 71.31% in Q3, and the ratio of short-term funding to medium- and long-term loans (MTLT) was managed at 27.03%, all in compliance with regulatory standards.

MSB’s business operations focus on enhancing capital safety and liquidity (Photo: MSB)

In terms of capital structure, customer deposits reached nearly VND 183.4 trillion in the first nine months, a 19% increase from the end of 2024. Non-term deposits (CASA) exceeded VND 51 trillion, marking the fourth consecutive quarter of growth and accounting for 27.83% of total deposits, placing MSB among the industry leaders. Term deposits rose by 16% to nearly VND 132.36 trillion. Issuance of securities reached almost VND 26.1 trillion, a 23% increase from the end of 2024. These results highlight MSB’s development of a diversified deposit base, ensuring optimized funding costs in a highly competitive market.

Moody’s upgrade of MSB’s credit rating components is significant as the bank seeks to diversify its medium- and long-term funding sources, particularly from international capital markets. The higher rating enhances MSB’s credibility with partners, enables access to more cost-effective funding, and expands collaboration opportunities with global financial institutions. This achievement also strengthens customer and investor confidence, fueling MSB’s growth strategy toward a safer, more efficient, and internationally compliant operational model.

An MSB representative stated, “Moody’s assessment objectively recognizes MSB’s continuous efforts to enhance its financial capabilities. We view this as a crucial milestone and a motivator to further improve our operational quality and business efficiency, ensuring the highest trust and reliability for our customers and partners.”

With its strengthened foundation, MSB continues to pursue a cautious growth strategy, emphasizing quality, sustainability, and maintaining its competitive edge among Vietnam’s leading joint-stock commercial banks.