Moody’s affirms ratings of Banks in South and South East Asia; Check Ratings of PNB, BOB, Other Indian Banks
Moody’s Ratings (Moodys) has today taken multiple rating actions on banks in South and Southeast Asia following the publication of the updated Banks methodology on 17 November 2025, which is now its primary methodology for bank ratings globally.
- Baseline Credit Assessments (BCA): five banks affirmed, seven banks upgraded by one notch;
- Long-term deposit ratings: nine banks affirmed, three banks upgraded by one notch;
- Long-term issuer, senior unsecured debt, senior unsecured MTN programme ratings, where applicable: nine banks affirmed, three banks upgraded by one notch.
DBS Group Holdings Ltd & DBS Bank Ltd
Moody’s has affirmed all ratings of DBS Group and DBS Bank. The rating agency said that after updating how it calculates important ratios such as capital, funding, and liquidity, DBS continues to show strong financial health. DBS performs well because it operates in many countries and has a wide range of business activities, which helps it stay stable even when the economy slows down. Moody’s said DBS could face a downgrade only if its bad loans rise above 2%, its capital falls below 14.5%, or its profitability drops significantly.
Oversea-Chinese Banking Corporation (OCBC)
OCBC’s ratings have also been affirmed. Moody’s said the bank remains financially strong even after applying new calculation methods for capital, liquidity, and funding. OCBC’s large operations across different regions help reduce risks. However, OCBC’s ratings could be downgraded if its bad loans rise above 3%, capital falls below 14.5%, or profitability becomes very low.
United Overseas Bank (UOB)
Moody’s has affirmed UOB’s ratings as well. The bank continues to show strength under the updated rating model. UOB benefits from strong regional presence and a well-diversified business model. Moody’s said the bank will stay stable unless its bad loans increase above 3%, its capital drops below 14.5%, or its earnings weaken below a safe level.
Punjab National Bank (PNB)
Moody’s has affirmed PNB’s Baa3 rating but also upgraded its Baseline Credit Assessment (BCA). The upgrade reflects improvement in PNB’s capital, asset quality, and profitability. Moody’s added that PNB benefits from a very high chance of support from the Government of India if needed, which strengthens investor confidence. PNB’s ratings may be upgraded if capital increases further and profitability stays high. However, ratings may fall if India’s sovereign rating drops, or if PNB’s loan growth becomes too aggressive and leads to poor asset quality.
Bank of Baroda (BOB)
BOB has also had its Baa3 rating affirmed and its BCA upgraded. Moody’s noted that the bank has improved its capital and asset quality, and the updated method of calculating ratios also supports the upgrade. Like PNB, BOB benefits from a very high likelihood of government support. The ratings could go up if its capital rises above 14% and profitability remains strong. But ratings may go down if India’s sovereign rating is cut or if the bank’s loan growth puts pressure on asset quality or capital levels.
Canara Bank
Moody’s affirmed Canara Bank’s ratings and upgraded its BCA as well. The bank has shown improvements in its capital and asset quality, and the updated capital scoring also helped the upgrade. Canara is also considered likely to receive government support if required, which strengthens its rating. Upgrades are possible if profitability and capital continue to improve. A downgrade may happen if India’s rating weakens, if the bank’s loan growth becomes risky, or if its capital falls too low.
Saigon Thuong Tin Commercial Joint-Stock Bank (Sacombank)
Moody’s has upgraded Sacombank’s ratings due to major progress in its restructuring process. The bank now has stronger capital, better earnings, and is managing old problem loans more effectively. Moody’s said Sacombank could receive another upgrade if it maintains low levels of bad loans and improves capital further. However, it could face a downgrade if its funding becomes weak or if capital falls below safe levels.
Fortune Vietnam Joint Stock Commercial Bank (LPBank)
LPBank’s long-term ratings and BCA have been upgraded. Moody’s noted that the bank has reduced its dependence on short-term borrowings and improved its funding structure. The bank also gains strength from having a large and active transaction network. Future upgrades are possible if capital increases further and the bank relies less on unstable funds. Downgrades may happen if bad loans rise, earnings weaken, or capital falls sharply.
Vietnam Maritime Commercial Joint Stock Bank (MSB)
Moody’s has upgraded MSB’s ratings because the bank holds a strong stock of high-quality liquid assets and has a healthy capital position. The rating agency said MSB could be upgraded again if it strengthens its provisions for bad loans, maintains strong capital, and reduces reliance on unstable funding sources. However, MSB’s ratings may fall if its capital drops too low or if its earnings and liquidity weaken.
Affin Bank Berhad (Affin Bank) – Malaysia
Affin Bank’s BCA has been upgraded due to better capital strength and a more stable funding profile. Moody’s mentioned that the bank is expected to maintain stable performance and can receive support from the State of Sarawak if required. The ratings could be upgraded if the bank shows consistent and strong profitability. A downgrade may occur if its liquid assets decline sharply or it relies too heavily on unstable funding sources.
PT Bank CIMB Niaga Tbk (CIMB Niaga) – Indonesia
Moody’s has affirmed all ratings for CIMB Niaga. The bank benefits from Indonesia’s strong deposit insurance, which keeps deposits stable. The rating agency said that an upgrade is possible if the bank improves its brand strength, asset quality, profitability, and capital metrics. A downgrade may occur if its bad loans rise above 8%, its capital falls below 14.5%, or its profitability weakens significantly.
P.T. Bank Danamon Indonesia (Bank Danamon) – Indonesia
Bank Danamon’s ratings have been affirmed due to its strong liquidity position and stable deposit base. Updated ratio scoring also reflects well on the bank. Moody’s said that upgrades could occur if the bank strengthens its franchise and improves its performance across asset quality, earnings, funding, and liquidity. A downgrade may happen if bad loans increase sharply or if the bank’s capital and liquid assets fall below safe limits.
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