Moody's Announces Retention of Credit Rating for Agribank
WVR - On January 22, the international credit rating agency Moody's Ratings announced the results of its periodic credit rating assessment for the Vietnam Bank for Agriculture and Rural Development (Agribank).
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| Agribank continues to affirm its position and reputation in the financial market. (Source: Agribank) |
Accordingly, Moody's has retained Agribank's credit rating at Ba2 for both the long-term local and foreign currency Issuer and Deposit ratings. Concurrently, Moody's has also maintained the long-term local and foreign currency Counterparty Risk Ratings at Ba2, along with the long-term Counterparty Risk Assessment at Ba2(cr). Agribank's rating outlook remains Stable.
In this assessment period, Moody's upgraded Agribank's Baseline Credit Assessment (BCA) and adjusted BCA to b1, reflecting Moody's evaluation of the improvement in Agribank's financial capacity and intrinsic credit profile, based on the information and data reviewed during the assessment.
The credit rating and outlook for Agribank continue to align with Vietnam's national credit rating (Ba2, Stable outlook). Maintaining the Ba2 rating with a Stable outlook indicates Moody's assessment that Agribank continues to uphold a stable financial and credit foundation amidst a volatile macroeconomic environment.
According to Moody's, Agribank's asset quality remains stable, with a declining non-performing loan ratio and a high coverage ratio, providing a solid buffer against potential credit risks. These factors reflect Agribank's prudent and consistent credit risk management in banking operations.
Moody's assesses Agribank's capital capacity and profitability as being maintained at an appropriate level, reflecting stable and sustainable operational efficiency in the face of challenging capital costs and business environment.
Regarding capital sources, Agribank continues to be highly rated by Moody's due to its large, stable, and widely distributed deposit base, along with its position as a state-owned commercial bank, contributing to the stability of its capital and liquidity.
The year 2025 marked a standout year for Agribank as the bank comprehensively completed and exceeded the business and financial targets set by the State Bank, reaffirming its role as a financial pillar of the economy and a key player in agricultural and rural development investment.
By the end of 2025, Agribank's total assets reached over VND 2.6 trillion, with mobilized capital exceeding VND 2.35 trillion, and loans to the economy nearing VND 2 trillion, of which loans to the agricultural and rural sectors accounted for about 64% of total loans.
Asset quality was effectively controlled with an on-balance-sheet non-performing loan ratio of approximately 1.1%, significantly lower than the target threshold under the restructuring plan. Agribank also accelerated restructuring activities linked to bad debt resolution, innovated its governance model, enhanced digital transformation, and invested in IT infrastructure, creating a solid financial foundation for safe, efficient, and sustainable development.
Entering 2026, Agribank identifies this as a pivotal year for implementing new strategic goals, continuing to adhere to the direction of safety, efficiency, and sustainability, maintaining its role as a key state-owned commercial bank.
The focus of management in 2026 will be on enhancing governance and risk control capabilities, promoting digital transformation tied to improving service quality and labor productivity, strengthening financial capacity, addressing and recovering bad debts, and prioritizing resources for key economic sectors, thereby contributing to macroeconomic stability and promoting sustainable growth.
Moody's decision to retain the Ba2 credit rating and upgrade Agribank's Baseline Credit Assessment further affirms Agribank's position and reputation in the financial market, serving as a crucial foundation for the bank to maintain access to domestic and international capital markets, effectively supporting the country's socio-economic development.
