FiinRatings reaffirms A-/Stable issuer rating of MB Securities Joint Stock Company

22 November 2022 - 10:59 AM Alternate Text

 

Hanoi, 21 November 2022

FiinRatings affirms MBS’s long-term Issuer Credit Rating of ‘A-’ along with Stable outlook in our latest surveillance, reflecting our assessment that the Company’s core business has remained stable with sustained brokerage market share, an acceptable level of profitability amidst unfavorable market conditions, and a strengthening capital base after successful equity raise as committed by MBBank (“Parent Bank”). The rating and outlook also reflect our expectations that MBS will continue to benefit from the majority ownership and strong support from its Parent Bank in the medium term. Further, the Company is expected to maintain its market presence as one of the leading brokerage companies in Vietnam with presence in relatively less volatile segments like broking and margin lending on the back of its sound risk management practices.

During the currently challenging economic environment, MBS’s asset quality of corporate bond portfolio in the next several months will be a key rating monitorable. The Company’s ability to sustain and improve its brokerage market share, along with any change in the level of support or ownership from MBBank which is beyond our expectations will also be key factors for MBS’ rating. Furthermore, due to the strategically important relationship between MBS and its Parent Bank, we will continue to follow and monitor MBBank’s own credit risk profile, especially after the admission of a credit institution under compulsory transfer program.

In summary, we will closely monitor and consider the factors that we believe to have great and sustainable impacts on the Company’s business and financial position, including:

  • Asset quality of the corporate bond portfolio of the Company, especially in 4Q2022 and 1Q2023.
  • Sustainability of brokerage market share of the Company in light of current unexpected events in the financial market.
  • The potential admission of a zero-Dong bank that could affect the Parent Bank’s credit profile.

Details of the rating announcement are HERE.

About FiinRatings

FiinRatings, a brand and part of FiinGroup Vietnam, is licensed by the Ministry of Finance to operate as a Credit Rating Agency (“CRA”) for Vietnam on 20 March 2020. With continuous effort to improve expertise and credit rating methodologies, on 24 May 2021, FiinRatings received Technical Assistance from S&P Global Ratings and ADB. On March 10th, 2022, FiinGroup has been officially approved by the Climate Bonds Initiative (CBI) as the first authorized company in Vietnam to verify green bonds issued by Vietnamese businesses when participating in CBI's program.

FiinRatings maintains a strict, independent policy to meet current regulations in providing credit rating services in Vietnam as well as to comply with our conflicts-of-interest policy and to ensure the objectivity and independence in giving opinion on our credit ratings. Visit us for more information.

For more information, visit HERE.

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