Moody’s Corporation, a global integrated risk assessment firm, on Wednesday announced the launch of Vietnam Investors Service and Credit Rating Agency JSC (VIS Rating), a partnership between Moody’s and leading Vietnamese financial institutions. 

The Vietnamese Ministry of Finance on Tuesday issued a credit rating agency license to VIS Rating that was initiated by the Vietnam Bond Market Association.

VIS Rating will provide independent credit rating services to corporate issuers in Vietnam.

Moody’s is the largest shareholder in VIS Rating with a 49-percent holding but VIS Rating operates independently from Moody’s.

Other founding shareholders include ACB Securities Company, Dragon Capital Finance Limited, Nam A Bank Asset Management Company Limited, VNDIRECT Securities Corporation, and VPS Securities Joint Stock Company.

Michael West, president of Moody’s Investors Service, a subsidiary of Moody's Corporation, said, “Moody’s recognizes the vital role that the local debt capital market plays in driving Vietnam’s economic growth,” adding that its international presence and local experience will position VIS Rating as the rating agency of choice in Vietnam.

Vietnam’s outstanding corporate bonds were valued at around 13 percent of GDP as of August this year, pointing to robust growth potential in its debt capital market. 

As Vietnam’s domestic bond market develops, credit ratings and research will play a meaningful role by helping companies access new capital, formulate funding strategies, signal transparency, and maintain investor confidence during times of market stress.

VIS Rating broadens Moody’s network of domestic partners in Asia-Pacific and complements its cross-border coverage in Vietnam, according to Wendy Cheong, managing director and regional head of Asia-Pacific at Moody’s Investors Service and a member of VIS Rating’s board of management. 

Tran Le Minh, CEO and managing director of VIS Rating, shared that the firm had the backing of Moody’s and other leading local financial institutions as founding shareholders. 

“Together, we will build an organization that will be synonymous with trust, credibility, and best-in-class credit ratings and research in Vietnam,” Minh said.

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