Moody's Ratings has upgraded several key credit ratings for Southeast Asia Commercial Joint Stock Bank (SeABank, HOSE: SSB), including its Baseline Credit Assessment (BCA) to Ba3, Long-term Counterparty Risk Ratings (CRRs) to Ba2, and Long-term Counterparty Risk (CR) Assessment to Ba2(cr). The agency also changed SeABank's outlook to Positive from Stable while maintaining its Ba3 Long-term bank deposit and issuer ratings.
The upgrades reflect SeABank's strengthened intrinsic credit profile, driven by stable asset quality, stronger capital, and improved risk management. Moody's noted that the bank's solvency profile has improved, with its BCA and Adjusted BCA moving from B1 to Ba3. The positive outlook signals potential for further rating improvements over the next 12–18 months, contingent on factors such as Vietnam's sovereign rating upgrade.
SeABank's asset quality remained broadly stable, with non-performing loans (NPL) maintained at an appropriate level. Moody's expects new delinquencies to stay low, supported by a favorable operating environment and the bank's track record in asset quality management. The bank's tangible common equity to risk-weighted assets (TCE/RWA) ratio is expected to remain above 12%, in line with domestic peers, indicating a solid capital position.
The upgrades to SeABank's Long-term CRRs and CR Assessment demonstrate a positive assessment of its ability to meet financial obligations to counterparties. This enhances the bank's reputation and its capacity to expand partnerships and access funding from domestic and international financial institutions. Moody's also highlighted that SeABank's growing access to long-term funding from development financial institutions will improve funding stability, mitigate refinancing risks, and support sustainable growth.
For business leaders and investors, these rating upgrades signal SeABank's improved creditworthiness and stability, making it a more attractive partner for corporate banking, trade finance, and investment. The positive outlook suggests that the bank may continue to strengthen its financial profile, potentially leading to lower borrowing costs and better access to capital markets. This development also reflects broader trends in Vietnam's banking sector, where improving asset quality and capital adequacy are driving positive credit actions.
Moody's expects SeABank's credit profile to benefit from ongoing efforts to diversify its funding base, with a particular emphasis on long-term funding from development financial institutions. The agency also noted the potential for a one-notch rating upgrade if Vietnam's sovereign rating is upgraded in the future, underscoring the link between sovereign creditworthiness and bank ratings in emerging markets.
For more information, visit SeABank's website.
