Fitch Ratings has assigned Ho Chi Minh City Development Joint Stock Commercial Bank (HOSE:HDB) first-time Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) of 'BB-', with a Stable outlook, according to a statement released on Monday.

The ratings agency has also assigned HDBank a Viability Rating of 'bb-' and a Government Support Rating of 'bb.' The bank's IDRs are driven by its VR and backstopped by its GSR.

Fitch said the IDR and viability rating reflect the bank's expanding banking franchise, which supports above-average profitability and a steady funding and liquidity profile.

While the bank faces risks from rapid credit growth and "moderately weaker" asset quality than its peers, they are likely to remain contained in the near term, lifted by a favorable economic environment, Fitch said.