Singapore, November 18, 2025 – Moody’s Ratings has announced a series of rating actions on major banks across South and Southeast Asia after unveiling its updated global bank rating methodology. The changes, effective November 17, recalibrate capital, funding, and liquidity metrics, while introducing clearer stress-testing and qualitative adjustment frameworks.
Key Outcomes
- Baseline Credit Assessments (BCA): 7 banks upgraded, 5 affirmed
- Long-term deposit ratings: 3 upgraded, 9 affirmed
- Issuer and debt ratings: 3 upgraded, 9 affirmed
Regional Highlights
- Singapore: DBS Group, OCBC, and UOB ratings affirmed, reflecting strong diversification and resilience.
- India: Punjab National Bank, Bank of Baroda, and Canara Bank upgraded on improved capital and asset quality, supported by government backing.
- Vietnam: Sacombank, LPBank, and MSB upgraded, citing restructuring success, stronger liquidity, and reduced reliance on short-term funding.
- Malaysia: Affin Bank upgraded for improved funding profile and expected state support.
- Indonesia: CIMB Niaga and Bank Danamon affirmed, supported by stable deposits and ample liquidity.
Methodology Shift
Moody’s new framework emphasizes:
- Recalibrated thresholds for credit conditions
- Updated definitions for capital and liquidity ratios
- Principles-based stress testing
- Simplified treatment of instrument notching
Outlook
Moody’s noted that further upgrades could follow sustained improvements in profitability, capital strength, and asset quality. Conversely, rising problem loans, weaker liquidity, or sovereign downgrades could trigger rating pressure, particularly for Indian banks.
The banks and financial institutions in this rating action are: DBS Group Holdings Ltd, DBS Bank Ltd., Oversea-Chinese Banking Corporation Limited, United Overseas Bank Limited, Punjab National Bank, Bank of Baroda, Canara Bank, Saigon Thuong Tin Commercial Joint-Stock Bank, Fortune Vietnam Joint Stock Commercial Bank, Vietnam Maritime Commercial Joint Stock Bank, Affin Bank Berhad, PT Bank CIMB Niaga Tbk and P.T. Bank Danamon Indonesia TBK.
