One of the three most prestigious credit rating organizations in the world - Fitch Ratings has raised the long-term issuer default rating (IDR) of the Electricity of Vietnam (EVN) and 6 member units from "BB" to "BB+"(stable outlook).
Fitch Ratings upgraded EVN and its 6 member units to BB+.
Specifically, 6 member units of EVN were evaluated including: National Power Transmission Corporation (EVNNPT); Southern Power Corporation (EVNSPC); HANOI City Electricity Corporation (EVNHANOI); HOCHIMINH City Electricity Corporation (EVNHCMC); Northern Power Corporation (EVNNPC); Central Power Corporation (EVNCPC).
This rating followed the upgrade of Vietnam's long-term foreign currency IDR from "BB" to "BB+" (on December 8, 2023).
Fitch has also upgraded the senior unsecured debt ratings of EVN and EVNNPT from "BB" to "BB+".
According to Fitch Ratings: EVN's rating is on par with Vietnam's national rating according to Fitch's Government-Related Entities (GRE) rating criteria, reflecting the state's strong support ability.
The independent credit profile (SCP) of EVN is assessed at “BB”.
The ratings of EVNNPT reflected an independent credit document of "BB+", on par with the IDR of the parent company EVN.
The Ratings of 5 power corporations: EVNHANOI, EVNHCMC, EVNSPC, EVNNPC and EVNCPC - are ranked on par with the rating of the parent company – EVN, to fit with the criteria for ranking links between a parent company and member company (PSL) of the Fitch.
Fitch assessed that the overall motivation in supporting the five corporations is "high", based on "low" legality and "high" strategic and operational motivations.
Fitch highlighted all of the independent credit documents of the corporations as "BB", the same as for EVN.
The ratings of EVN, EVNNPT and 5 power corporations are directly linked to the credit quality of the parent company.
A change in assessment of Fitch on the credit quality of the respective parent company will automatically result in a change in the ratings of these entities
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