# Moody’s Revises Key Bank Ratings Across South and Southeast Asia After Methodology Update

- Link: https://www.thailand-business-news.com/banking/258937-moodys-revises-key-bank-ratings-across-south-and-southeast-asia-after-methodology-update
- Published: 2025-11-19T13:54:40+07:00
- Author: Stephanie Chu

**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:

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 * 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.

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