What does Moody’s Credit Rating upgrade reveal about SeABank?

Internal capability as the decisive factor

Moody's Ratings recently upgraded SeABank's Baseline Credit Assessment (BCA) to Ba3 from B1, Counterparty Risk Ratings (CRRs) to Ba2 from Ba3, and long-term (LT) Counterparty Risk Assessment (CR) to Ba2(cr) from Ba3(cr). The agency also maintained Ba3 ratings for Local currency (LC) and Foreign Currency (FC) LT bank deposit and Issuer Ratings, while revising the outlook from "Stable" to "Positive."

According to Moody's, the BCA upgrade reflects SeABank's strengthened intrinsic credit profile, supported by stable asset quality and a stronger capital. Notably, the agency's assessment did not emphasize asset size or growth speed, but instead focused on the factors that determine long-term sustainability of the Bank.

The first factor is asset quality. Moody's noted that SeABank's asset quality has remained broadly stable despite a challenging business environment. The agency expects new delinquencies to remain low over the next 12-18 months. This indicates the Bank's effective credit risk management and strong credit portfolio quality — a factor that directly affects profitability and overall system safety.

The second factor is a strengthened capital base. Moody's expects SeABank's tangible common equity to risk-weighted assets ratio (TCE/RWA) to stay above 12% over the next 12–18 months, supported by capital retention and modest loan growth relative to domestic peers. A strong capital foundation gives the Bank greater capacity to withstand risk while creating room to expand operations in line with capital adequacy requirements.

Moody's also highlighted SeABank's effective risk management. This is a notable point, as in recent years risk governance capability has increasingly been used by credit institutions as a rating benchmark rather than growth speed. A bank may grow quickly in the short term, but only banks that maintain asset quality, manage risk effectively and strengthen capital are able to improve their rating profile over the long term. Moody's BCA upgrade shows that SeABank is increasingly meeting these criteria.

A boost to SeABank's credibility and growth outlook

While the BCA upgrade reflects what SeABank has already improved, Moody's outlook revision from "Stable" to "Positive" signals the rating agency's expectations for the period ahead.

Within a credit rating framework, the Outlook does not reflect current status but rather the assessed credit trend over the next 12–18 months. The upgrade to "Positive" means Moody's expects SeABank to have the potential to further improve its rating profile if it sustains its current fundamentals.

One basis for this assessment is SeABank's funding diversification strategy. Moody's noted that expanding access to medium- and long-term funding from international financial institutions will help the Bank strengthen the stability of its funding structure and create additional room for growth in the coming years. This is a key advantage as banks increasingly need to balance credit growth with liquidity requirements.

The upgrade of SeABank's CRRs and CR Assessment also carries meaning beyond the rating itself. These indicators reflect the Bank's level of reliability in transactions with financial institutions, partners and investors. As creditworthiness improves, SeABank gains more favorable conditions for expanding cooperation, accessing international capital, and strengthening its position in the financial market.

For investors, Moody's assessments and ratings serve as an important reference point when evaluating the Bank's financial health and outlook. For international partners, credit ratings are among the key factors in deciding whether to cooperate, extend financing, or participate in financial transactions. Therefore, the credit rating upgrade carries value not only in terms of reputation but also in generating tangible business advantages.

More broadly, SeABank's story also reflects a shift in how rating agencies evaluate the banking sector. Rather than focusing on growth speed or asset size, criteria such as asset quality, capital strength, risk governance and sustainable development capacity are increasingly becoming the decisive factors.

Moody's key rating upgrade and "Positive" outlook revision not only recognize the improvements SeABank has achieved, but also reflect an expectation that the Bank is on the right track in strengthening its financial foundation and governance in line with international standards. As the banking industry enters a phase of competition increasingly driven by quality and sustainability, these will be important advantages helping SeABank strengthen its position in the market.