| Vietcombank ratings unaffected after Mizuho’s acquisition: S&P | |
Standard & Poor’s Ratings Services said that its ratings – BB-/Negative/B – on Bank for Foreign Trade of Vietnam (Vietcombank) are unchanged following the bank’s capital and business alliance with Mizuho Corporate Bank Ltd. “We believe that, while the capital infusion will provide immediate capital strengthening, the bank will continue to require more capital to support its high growth in loans,” according to Reuters. “The alliance could also provide Vietcombank with an enhanced products and services offering, and accelerate the alignment of the bank’s risk management system and processes with international best practices.” “However, in our opinion, the alliance may face some difficulty in execution, given the difference in risk culture and operating norms in the two organizations.” As part of the alliance, MCB will subscribe to 15 per cent of Vietcombank’s shares through a private placement of equity. The alliance will also involve provision of technical support, mutual cooperation, and opportunities for business partnerships with all Mizuho Financial Group companies. The transaction is subject to regulatory approval and the capital infusion is likely by the first quarter of 2012. | |
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