Ratings at a glance How creditworthy are which countries?

Status: 15.06.2021 01:05 p.m. Credit ratings from the major US rating agencies help determine the interest rates at which a state can borrow money. How do Moody’s, Fitch and Standard & Poor’s rate the creditworthiness of the countries in the eurozone and other countries? Who gets the top grade, the “Triple-A”? An overview of the current credit ratings from Belgium to Cyprus.

Source: rating agencies / as of June 15, 2021

Source: rating agencies / as of June 15, 2021

background 07/14/2011

One test site COVID-19 in Brazil. (Photo: THX / TTXVN) On April 23, credit rating agency Moody’s warned that the Brazilian government’s failure to impose ceiling regulations on public spending on support for people and businesses affected by the COVID-19 pandemic would Negatively affect the credit profile of this country. Moody’s Vice President Samar Maziad said that the credit rating agency kept its assessment of Brazil’s solvency at “Ba2” with a stable outlook. However, Mr. Maziad said that the Brazilian government’s view of the pandemic as an exception in order not to apply regulations on the public spending ceiling, will adversely affect the credit rating of the country’s ability to pay debts . In addition, Moody’s Vice President Samar Maziad also highlighted the expectation that the Brazilian authorities will maintain their previous commitment on the issue. consolidate fiscal year in the coming years. In 2020, the budget deficit of Brazil has reached the equivalent of 14% of Gross Domestic Product (GDP), making the public debt of Latin America’s largest economy a record 90% of GDP. The poor fiscal situation in the past year was due to the fact that the government had to increase public spending in order to reduce the economic impact of the COVID-19 epidemic on citizens and businesses. On April 7, in the context of a strong outbreak of COVID-19 across the country, the Brazilian government had to resume an emergency assistance program for the poor to overcome the effects of pandemic COVID-19 with a budget of about 8 billion USD./.

Mr. Nguyen Hoang Duong – Deputy Director of Finance Department of Banks and Financial Institutions (Ministry of Finance) gave opening speech at the conference. Photo Do Doan

April 16 in the city. Ho Chi Minh, the Ministry of Finance cooperates with the Asian Development Bank to hold a Conference on Development of credit rating activities in Vietnam. The event is part of a series of conferences of the Ministry of Finance to disseminate, train and provide information to businesses (DN), investors (investors), and participants in the financial market about rating activities. credibility in Vietnam.

Credit rating plays an important role in the development of the financial market in general and the bond market in particular. Through the determination of the credit rating, investors have more information to evaluate the financial ability, solvency of the creditors, of the financial products rated by credit, as well as the risks involved.

Speaking at the opening of the conference, Mr. Nguyen Hoang Duong – Deputy Director of Finance Department of Banks and Financial Institutions (Ministry of Finance) said, to develop credit rating activities in Vietnam, Ministry of Finance submitted to the Government for promulgation Decree No. 88/2014 / ND-CP on credit rating services, which fully regulates the contents of organization, operation, service provision, and information disclosure of the organization. credit rating organization.

Enterprises discuss with international financial experts about credit rating services. Photo: Do ​​Doan

The Securities Law 2019 and guiding documents have specific provisions on cases where enterprises issue bonds to the public must be rated with credit ratings and implementation roadmap, and at the same time encourage businesses to issue bonds. Private corporate bonds (corporate bonds) use this service to enhance the publicity and transparency of the corporate bond market.

“The Ministry of Finance is also studying to associate the regulations on credit rating results with regulations on classification and investment criteria for some particular financial institutions or using credit rating results. when calculating the indicators of capital safety and assets of organizations in the financial market “- Mr. Nguyen Hoang Duong said.

At the conference, experts from the Australian Securities and Investments Commission, international rating organizations S&P, Moody’s and the credit rating agency Fiin of Vietnam presented about the role of the rating agency. credit rating in the financial market, credit rating methods and processes, factors affecting the credit rating of enterprises, the contents to be noted to improve ratings and the impact of results. credit rating results for decisions of investors.

In general, the contents of the conference are intended to provide full information on the development of credit rating activities in Vietnam and to raise market awareness about this activity.

It is known that, according to Decision No. 570 / QD-TTg dated April 17, 2015 of the Prime Minister approving the Plan for development of credit rating services to 2020 and a vision to 2030, the Ministry of Finance will see review and grant certificates of eligibility for business in credit rating services for up to 5 enterprises.

Up to now, 2 Vietnamese enterprises have been granted business eligibility certificates and are providing credit rating services in the market. The Ministry of Finance has also received a request for attention from a number of reputable international credit rating organizations and will consider and appraise it in accordance with the law./.

Head office of LienVietPostBank. (Photo: Vietnam +)

Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank – stock code LPB) achieved a pre-tax profit of VND1,112 billion in the first quarter of 2021, nearly double the same period last year.

This is the quarter with the best business results ever, even exceeding the profit of some previous years of operation of LienVietPostBank.

In addition, by the end of March 31, total assets of LienVietPostBank reached more than 245,200 billion, up over 20% over the same period last year. Capital mobilization from economic organizations and individuals continued to grow well, reaching nearly VND206,300 billion, in addition, outstanding loans from this sector reached over VND 183,100 billion, an increase of more than VND 6,100 billion compared to the end of the year. 2020.

Notably, the proportion of retail growth in credit growth in Q1 reached more than 80%, indicating a consistent orientation of the bank towards the retail segment.

In the insurance segment sold through the banking channel (Bancassurance), LienVietPostBank is among the top commercial banks with the highest sales in the market. Along with the efforts in business and service development, by the end of the first quarter, LienVietPostBank’s net service revenue reached VND 162 billion, an increase of nearly 70% over the same period last year.

On the HOSE, stock LPB is in the group share had the highest market price growth in Q1, up nearly 40%, from 12,400 VND / share in the trading session on 31/12/2020 to 17,350 VND / share in the trading session on 31/3 and now is reaching the price of nearly 19,000 dong / share.

In mid-March, credit rating agency Moody’s upgraded LienVietPostBank’s outlook to “Stable.” This result reflects the bank’s financial capacity, good risk management and long-term development opportunities.

According to the plan, on April 29, LienVietPostBank will hold the Annual General Meeting of Shareholders, it is expected that this year, the bank will set a plan. profit before tax is 3,200 billion. Thus, with the first quarter results reaching 1112 billion, LienVietPostBank has fulfilled about 35% of the profit target in this year’s business plan./.