Moody's Ratings has upgraded several key credit ratings of 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 agency maintained SeABank's Ba3 Long-term bank deposit and issuer ratings but changed the outlook to Positive from Stable.
The upgrade reflects SeABank's strengthened intrinsic credit profile, driven by stable asset quality, stronger capital, and improved risk management. Moody's expects the bank's solvency profile to remain robust, with asset quality staying broadly stable and the non-performing loans ratio maintained at an appropriate level. New delinquencies are anticipated to remain low over the next 12-18 months, supported by a favorable operating environment and the bank's track record in asset quality management.
Moody's also highlighted SeABank's solid capital position, with its tangible common equity to risk-weighted assets (TCE/RWA) ratio expected to stay above 12%, in line with domestic peers. The agency noted that SeABank's growing access to long-term funding from development financial institutions will enhance funding stability, mitigate refinancing risks, and support sustainable growth.
The positive outlook indicates that SeABank's credit profile could benefit from ongoing efforts to diversify its funding base and improve funding stability over the next 12-18 months. Additionally, Moody's believes SeABank has the potential for a one-notch rating upgrade if Vietnam's sovereign rating is upgraded in the future.
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. For more information, visit SeABank's website.
