FiinRatings: Initial Rating Public Announcement Vietnam Technological and Commercial Joint Stock Bank (A+ | Outlook: Stable)

November 01, 2023

Hanoi, 01 November, 2023

FiinRatings is pleased to announce that it has assigned a first-time Long-Term Issuer Credit Rating of “A+” to 'Vietnam Technological and Commercial Joint Stock Bank (“Techcombank” or “the Bank”) with “Stable” rating outlook.

The issuer rating on Techcombank of “A+” with Stable” rating outlook reflects our expectation that the Bank’s credit profile will remain stable over the next 24 months, supported by the Bank’s solid business position as well as robust capital and earnings profile. Techcombank’s dedicated enterprise-wide risk management processes and prudent asset-liability management have effectively helped mitigate its material concentrations in cyclical and capital-intense industries. In addition, the Bank’s funding and liquidity profile will continue to benefit from a sticky affluent and mass affluent customer base as well as the Bank’s capabilities to retain its leading position in demand deposit share.

Upgrade Scenario:

Factors that could, individually or collectively, lead to a review for positive rating action or upgrade for Techcombank:

  • Earnings and capital strengths are retained while the Bank significantly diversifies its loan portfolio away from the current capital-intensive and risky segments;
  • Improved funding and liquidity profile, reflected via its stable funding ratio and long-term funding ratio on par or better than the industry average.

Downgrade Scenario:

Factors that could, individually or collectively, lead to review for negative rating action or downgrade:

  • Earnings are negatively impacted due to (i) lower interest income sources and/or (ii) increasingly unfavorable market conditions that prevent the development of fee-income products like IB services and bancassurance;
  • Increasing problematic loans result in higher credit costs, therefore straining the Bank’s earnings and capital profile. In addition, the Bank loosens its risk appetite by lending to lower-tier property developers and/or retail customers of less quality;
  • The liquidity profile is weakened due to rising drawdown pressure from off-balance sheet credit-linked items.

Read the full rating announcement HERE

Notice: Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. FiinRatings’ opinions, analyses, and rating acknowledgment decisions are for reference and are not recommendations to purchase, hold, or sell any securities, and/or debt, or financial instruments or to make any investment decisions.

About FiinRatings

FiinRatings Joint Stock Company, a member of FiinGroup and a technical collaboration partner with S&P Global Ratings, is a local licensed Credit Rating Agency in Vietnam. FiinRatings provides credit ratings and related services to issuers, creditors, and investors in the Vietnam credit market. FiinRatings is also Vietnam’s first green bonds approved verifier, in accordance with the green bond international standard by the Climate Bonds Initiative. For more information, please visit

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