Reporter | Zeng Lingjun

China Chengxin International recently released a follow-up rating report on Sichuan Tianfu Bank. The report shows that the bank’s credit rating outlook has been adjusted from stable to negative. This indicates that the credit level of Tianfu Bank may decline in the next 12 to 18 months.

It is understood that this is the first city commercial bank whose rating outlook has been adjusted to negative this year. “The downgrading of the rating may affect the interest rate of the bank’s bond issuance. The lower the rating, the higher the interest rate of the bond issuance, which will increase the cost and difficulty of financing.” A banker commented to an interface news reporter.

Zhou Maohua, an analyst at the Financial Markets Department of Everbright Bank, told Jiemian News that company ratings are one of the important basis for investors to price companies and related assets. There are many factors that trigger downgrades of companies or institutions, such as macroeconomics, policy changes, and emergencies. , The company’s internal management issues, etc., caused changes in the company’s fundamentals, business prospects, and asset quality.

Regarding the reasons for the rating downgrade, China Chengxin International mentioned that Tianfu Bank faces many challenges, including the slowdown in macroeconomic growth and the pressure on bank operations and asset quality caused by changes in the regional credit environment, as well as continuous credit assets and non-standard investment risks. Exposure and profitability have been significantly weakened, deposit stability has become weaker, and liquidity management pressure has increased.

Last year, Tianfu Bank’s revenue and net profit both declined significantly: net operating income was 4.324 billion yuan, a year-on-year decrease of 9.46%; net profit was 846 million yuan, a sharp drop of 42.11% year-on-year.

China Chengxin International also mentioned that the bank’s loan and non-standard investment risks continue to be exposed, and the resolution is increasing, and future credit risk management and control will still face pressure.

As of the end of 2020, the bank has no non-performing balances in non-standard investments, but special mention loans are 6.213 billion yuan, accounting for 23.97%. The financiers are mainly real estate and trading companies in Sichuan and Guizhou. “On the whole, the bank’s securities investment accounts for a relatively large proportion of non-standardized debt investments, and they have already experienced significant impairment. The information transparency of such investments is low, and they face greater pressure to withdraw impairment reserves, and related risks need to be maintained. Pay close attention.” The report mentioned.

As of the end of 2020, the bank’s non-performing loan balance increased by 341 million yuan to 2.612 billion yuan year-on-year, and the non-performing loan ratio increased by 0.02 percentage points from the beginning of the year to 2.00%.

In addition, the rating report also hints at the liquidity pressure of Tianfu Bank. As of the end of 2020, Tianfu Bank’s assets due within one year accounted for 39.58% of total assets, and liabilities due within one year accounted for 60.86% of total liabilities. The maturity gap within 2-7 days at the end of the year was -6.27 billion yuan. Facing greater pressure on liquidity management.

According to the official website of Tianfu Bank, the bank was established in 2001 and successfully introduced German strategic investors in 2005, becoming China’s first secondary city to introduce foreign capital. Its current asset scale is 216.181 billion yuan.

The bank’s equity is relatively dispersed. As of the end of last year, the top five shareholders of the bank’s shareholding ratios were: Sichuan Mingyu Group Co., Ltd. (9.98%), Nanchong Union Industrial Co., Ltd. (9.98%), and Chengdu Yunji Real Estate Development Co., Ltd. Liability company (9.93%), Chengdu Fengzhilin Trading Co., Ltd. (9.89%), Nanchong Jinnan Industrial Co., Ltd. (4.99%)

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

Multipurpose MPV segment in May: Toyota Innova is out of time, let Suzuki XL7 surpass sales Previously, Toyota Innova was a special case in the Vietnamese market when it was not the only product in the segment but was mentioned as a “alone and one horse” model. For Vietnamese people, when it comes to MPV for family, they refer to Innova. At that time, other names such as Kia Carens, Rondo or Chevrolet Orlando were just extras for those with different needs. However, the power department has completely changed when the appearance of two models Mitsubishi Xpander and Suzuki XL7 makes the competition in this car group in the last 2 years become more fierce than ever. The outdated design has not changed much, the equipment is at a sufficient level, plus the price policy is quite high compared to the common ground of the opponent, which is causing Innova to gradually lose its attraction in the market. In contrast, two emerging “rookies”, Mitsubishi Xpander and Suzuki XL7, possess a youthful and modern design, along with a dense array of utility equipment to help these two models be chosen by many domestic consumers. yellow”. Toyota Innova used to be a “alone and one horse” model in the multi-purpose MPV segment According to a report by the Vietnam Automobile Manufacturers Association (VAMA), in May 2021, the leading position in the multi-purpose MPV segment continues to call the Mitsubishi Xpander name with sales of 1,470 vehicles in the month. car, leading the whole market in this car group. Mitsubishi Xpander is officially the new “king” in the versatile MPV segment Although only appearing on the market for a short time, Suzuki XL7 has also created many waves in the ranking race in the multi-purpose MPV segment in recent months. Sales report of Suzuki Vietnam said that in May 2021, sales of XL7 sold to the market were 476 units, officially surpassing sales of Toyota Innova. Currently, Suzuki XL7 is facing supply difficulties when the factory in Indonesia lacks chips. Contrary to the “sold out” status of the Suzuki XL7, the longtime “king” in the market, Toyota Innova, was officially surpassed by this “rookie”. Innova’s car sales are 339 units, 77 units less than XL7. Hit hard and first in the cheap multi-purpose MPV segment, in addition to Innova, Toyota Vietnam also distributes two other models, Rush and Avanza. Toyota Rush is one of 3 popular multi-purpose MPV models on the market Similar to the two models of Mitsubishi Xpander and Suzuki XL7, Toyota Rush has continuously maintained the attraction of users since its first return to Vietnam at the end of 2018. The design is suitable for the needs of domestic customers. , versatile and powerful operation, the same price and attractive incentive programs are considered the keys to Rush’s breakthrough in sales. In May 2021, Toyota Rush sold 449 units, ranked 3rd in the whole market in the MPV segment for the month. Suzuki Ertiga is currently out of stock due to lack of supply Before the XL7 was brought home, Suzuki Ertiga was also considered a serious competitor of Toyota Innova and Mitsubishi Xpander. However, the scandals about the price of “expensive” spare parts, and the frequent delay in handing over the car made the Ertiga’s image blurred in the eyes of consumers. The sales report of this model in May 2021 is 115 units, with Toyota Avanza (sales of 2 units) standing at the “penultimate” position in the ranking.

New Zealand has the most expensive housing market in the world. (Source: stuff.co.nz) According to Bloomberg Economics, real estate prices around the world is exploding strongly, from which the warning will form a real estate bubble unprecedented since the 2008 financial crisis. Based on the key indicators used in Bloomberg Economics’ calculations, New Zealand, Canada and Sweden are ranked as the top countries, respectively. Expensive housing market best of the world. Meanwhile, the UK and US are also near the top of the risk charts. Bloomberg Economics economist Niraj Shah says there are multiple factors contributing to the rise in home prices to unprecedented levels worldwide, including record low interest rates, massive fiscal stimulus packages, and massive bailouts. Backup savings can serve as a down payment, limited housing stock and expectations of a strong recovery in the global economy. Besides, the trend of working from home to avoid infection COVID-19 causing more people to need more living space and many governments giving tax incentives to homebuyers also increase the demand to buy houses. According to calculations by Bloomberg Economics, the ratio of price to rent and price to income will help assess the sustainability of housing price increases. Bloomberg Economics analyzes that even as risk indicators rise, with interest rates remaining low, lending standards generally higher than before, and macro-prudential policies in place, the cause led to the real estate market collapse is not clear. Mr. Shah said that in the coming period, it is likely that the real estate market will witness a cooling, not a collapse. As interest rates start to rise and other measures are put in place to protect financial stability, the property market will face an “important test,” Shah said.

On June 9, Sina reported that the movie “Song The Charming Phi 3” aired received the love of the audience. The film reached more than 100 million views after only 18 hours, ranking 3rd on the list of hot movies after Lady of the Black Crow and Lizard, Dear Military. This achievement helped Luong Khiet have a total view of more than 10 billion, counting only online film projects. The quality score, the number of topics on hot keywords, the number of articles on the media sites of the projects she participated in were outstanding. Liang Jie is considered the current “rating queen” of Chinese web dramas. In particular, the movie series Song The Charm Phi alone has brought the beauty more than 9.8 billion views. The popularity of the work lies in the humorous script of entertainment and the good acting of Luong Khiet and Hinh Chieu Lam. Liang Jie, born in 1994, is one of China’s most popular young actors specializing in web drama and television. She is considered a rival of “Holy Maiden through the air” Trieu Lo Tu, according to QQ. The actress graduated from the Central Academy of Drama and entered the entertainment industry in 2004. Before stepping into the female lead, Luong Khiet only took on faint characters or appeared briefly in television works. . In 2017, Luong Khiet attracted millions of viewers, becoming a sought-after young face after the success of Song The Charm Phi 1. The unexpected attraction of the male and female lead couple pushed the producer to continue to release. part 2 and 3. In 2020, her work “New Great Song Kieu” set a rating record on CCTV8 with 45%, accounting for 5.53% of the market share of Chinese-language dramas. After that, the 27-year-old star received the main role in Em is my destiny, a remake of the Taiwanese hit movie – The fate I love you (Tran Kieu An, Nguyen Kinh Thien starred). The project has a total view of more than 2.4 billion, leading the list of hot movies on Tencent platform for 15 days. After 7 years in showbiz, Luong Khiet has impressive stats in his acting career. Her roles are not diverse, but still have her own audience, especially young audiences. Luong Khiet is easy to make a mark with cute acting, making viewers feel comfortable, according to QQ. Sina commented that Luong Khiet’s career is rising strongly. Currently, she is filming Phi Ho extra story, adapted from the novel Kim Dung. The female artist plays the role of Yuan Ziyi. Regarding his private life, in mid-May, Luong Khiet announced his breakup and annulment of his engagement with actor Ho Ba Giap. They confirmed their dating in 2017. On June 17, Luong Khiet had a project to turn into a brother one day, starring with Truong Tan Thanh on television.

The Great Wall of China is last on this list. The Internet connection here is rated as the worst, with speeds of only about 2Mbps when using mobile data. This comes as a big surprise, as the average internet speed in China is around 148Mbps. At this rate, a Chinese household can stream in Ultra-HD quality, on six devices at the same time. At the Great Wall, the internet connection speed via mobile data is only about 2Mbps. With a flood of free Wi-Fi networks and leading 4G connections in the world, it is easy to understand when the Golden Gate Bridge (San Francisco, USA), the Statue of Liberty (New York, USA) and the Sydney Opera House (Australia) occupy the top 3 positions in the ranking. Here, visitors can video call friends with clear images, or easily surf social networks with almost no lag. In Europe, the Eiffel Tower (France) ranks 4th on the rankings and is the best Internet connection location in this continent. Whether you’re sipping a latte at Les Ombres Rooftop Terrace or strolling at the foot of the tower, it’s not difficult to work remotely or follow trends on social media thanks to 31Mbps Internet speeds and plenty of free Wi-Fi. fees are available. Eiffel Tower is rated as the tourist destination with the best Internet connection in Europe. In the UK, although London is one of the world’s best 5G cities, Buckingham Palace is only ranked 7th on the list with 23Mbps internet speed. Meanwhile, Barcelona (Spain) not only attracts visitors with countless cultural and historical monuments and beautiful beaches, but also because of the convenience of the Internet. At the Sagrada Família in Barcelona, ​​the internet speed is around 31Mbps. The Royal Palace of Thailand in Bangkok is the highest ranked Asian representation in Uswitch’s ranking, with 6th place. Many other Asian representations rank low in this rating, such as the ancient citadel of Petra ( Jordan), the Angkor complex (Cambodia), the Taj Mahal (India) and the “loser” is the Great Wall of China (China).

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./.