The (P)B1 rating on the senior unsecured MTN program is in line with VPBank’s B1 long-term foreign currency issuer rating. The B1 issuer rating reflects the bank’s b1 baseline credit assessment (BCA) and Moody’s expectation of a moderate probability of support from the Vietnamese government (Ba3 stable) when needed.
VPBank’s b1 BCA reflects its strong profitability, underpinned by its leading market share in the high-margin consumer finance business, as well as its good capitalisation. The BCA also considers the credit risks associated with its consumer finance portfolio, and its lower problem loan coverage when compared to domestic and global peers.
The MTN program allows VPBank to issue senior notes in line with the maturities, currencies, interest rates and redemption structures specified in the applicable pricing supplement. Notes issued under the program constitute direct, unconditional, unsubordinated, and unsecured obligations of VPBank, and will rank pari passu among themselves and equally with all of VPBank’s other unsecured and unsubordinated obligations.
