On 18 May 2024, Moody’s Investors Service confirmed long term rating assessment for VPBank SMBC Finance Company Limited (FE CREDIT) remains unchanged at B1.
Moody’s has confirmed the CFR B1 of FE CREDIT, which is based on the correlation with other members of the same group.
According to Moody’s assessment, although FE CREDIT still faces some challenges, the positive support from its parent bank, VPBank (with a credit rating of Ba3 and a stable outlook), and SMBC will help offset these difficulties. Moody’s maintains the outlook for FE CREDIT as per the recent assessment.
In the context of volatile market with much uncertainty, maintaining the B1 rating demonstrates Moody’s positive recognition of FE CREDIT’s recovery efforts in recent times.
2023 marked a significant milestone for FE CREDIT in restructuring and fine-tuning across the system. Timely adjustments in business operations, cost optimization, and enhanced risk management have initially yielded achievements for Vietnam’s largest consumer finance company. In the second half of 2023, FE CREDIT recorded positive signs in its business operations.
By the end of Q1 2024, FE CREDIT’s disbursement scale grew positively compared to the 2023 average. With a more cautious lending strategy focused on low-risk customer segments, the quality of FE CREDIT’s loans has improved quarter by quarter.
Additionally, applying the group model has helped FE CREDIT optimize operating costs. In Q1, the company’s operating costs decreased by 10.5%, while the cost-to-income ratio (CIR) significantly dropped by 27.7% compared to the same period.
In 2024, FE CREDIT’s specific action programs will include optimizing the existing business model, improving the risk control framework, and enhancing customer experience. The company will also accelerate digital transformation activities aimed at broad customer outreach.
Simultaneously, FE CREDIT will strengthen cooperation with renowned retail chains to offer diverse and flexible products suited to customer segments to boost sales.
Share post
3 weeks trước
At the recent “Cashless Day 2025” event held in Ho Chi Minh City, FE CREDIT made a strong impression with its modern digital experience space, especially through the financial multifunction app named FE ONLINE 2.0. The app attracted thousands of visitors thanks to not only its smooth and convenient user experience, but also its wide […]
4 weeks trước
When Vietnam’s consumer finance market continues to recover and grow, digitalization has become a key driver in helping companies improve operational efficiency and meet the increasing expectations of customers. This contributes to shaping a more modern, flexible, and accessible consumer finance market. Digitalization – the inevitable growth engine of consumer finance In response to the […]
1 month trước
FE CREDIT has been honored by the international card organization JCB with three prestigious awards for its FE CREDIT JCB credit card. This recognition not only affirmed JCB’s trust and high regard for FE CREDIT’s capabilities in product development and operation, but also clearly reflected millions of customers’ strong support and loyalty for the company. […]
5 months trước
The escalating drought and saltwater intrusion have severely impacted daily life and agricultural production, particularly in the Mekong Delta. In response, FE CREDIT has expanded its humanitarian initiative, “Standing Together for the Community, Turning Dreams into Reality,”to assist disaster-affected and underprivileged residents. As part of this effort, the company has donated hundreds of water storage […]
(028) 39 111 555