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Moody's (MCO) Unveils a Partnership in Vietnam VIS Rating

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Moody's (MCO - Free Report) has unveiled – Vietnam Investors Service and Credit Rating Agency Joint Stock Company (VIS Rating) – a strategic partnership with Vietnam’s prominent financial institutions. This collaboration has already received a credit rating agency license from the country’s Ministry of Finance, marking a significant milestone for both Moody's and the Vietnamese financial sector.

VIS Rating, initiated by the Vietnam Bond Market Association, is set to revitalize the landscape of credit rating services in Vietnam. Moody's Investors Service (MIS) president, Michael West, said “As a global leader in credit ratings, research, and risk analysis, our international presence and local experience will position VIS Rating as the rating agency of choice in Vietnam.”

With Vietnam's corporate bond market accounting for around 13% of its GDP as of August 2023, there is immense growth potential in the sector. VIS Rating is well-poised to capitalize on this potential by delivering world-class credit rating services to domestic corporate issuers.

Moody's, the largest shareholder in VIS Rating with a 49% stake, brings its global expertise in credit ratings, research and risk analysis to the table. VIS Rating extends the company’s network of domestic partners in the Asia-Pacific region, strengthening its leading cross-border coverage in Vietnam. Nonetheless, VIS Rating will operate independently from Moody’s.

Other major shareholders in VIS Rating are ACB Securities Company, Dragon Capital Finance Limited, Nam A Bank Asset Management Company Limited, VNDIRECT Securities Corporation and VPS Securities Joint Stock Company.

Wendy Cheong, Managing Director and Regional Head of Asia-Pacific at MIS, stated, “VIS Rating broadens Moody’s network of domestic partners in Asia-Pacific and complements our leading cross-border coverage in Vietnam.”

For Vietnam's businesses, VIS Rating offers a gateway to accessing new capital, formulating effective funding strategies and instilling transparency and investor confidence during market volatility. The partnership also facilitates broader economic growth by aiding the development of a domestic bond market.

Moody’s has been expanding its footprint globally. Last year, it announced a deal to acquire SCRiesgo, which will bolster its presence in Central America and the Dominican Republic. Over the years, the company has undertaken several such measures that continue to improve revenue mix and provide increased scale and cross-selling opportunities across products and vertical markets.

Shares of this Zacks Rank #3 (Hold) company have risen 20.5% so far this year, outperforming the industry’s growth of 7.4%.
 

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In July, Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) and Morgan Stanley (MS - Free Report) announced plans to deepen their 15-year alliance by merging certain operations within their Japanese brokerage joint ventures.

The partnership, originating from MUFG's $9 billion investment in Morgan Stanley during the 2008 financial crisis, will see combined Japanese equity research, sales and execution services for institutional clients at Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities.

Additionally, their equity underwriting business will be rearranged between the two brokerage units. The implementation of this expanded alliance is scheduled for the first half of 2024.


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