Fitch affirms 'BB' ratings on EVN, EVNNPT, PVN; revises outlooks to stable

Tuesday, Apr 14, 2020 16:30

Fitch Ratings has revised the Vietnam Oil and Gas Group's outlook to stable from positive. — Photo PVN

Fitch Ratings has affirmed issuer default ratings and senior unsecured ratings of Vietnam Electricity (EVN), National Power Transmission Corporation (EVNNPT) and Vietnam Oil and Gas Group (PVN) at 'BB'.

However, the rating agency has revised the three companies' outlooks to stable from positive.

According to Fitch, EVN's ratings reflect its standalone credit profile (SCP), which is at the same level as the Viet Nam sovereign rating. Under Fitch's Government-related entities rating criteria (GERC), EVN's ratings will be equalised to that of the sovereign in case of any weakening in its SCP given the company's strong linkages with the state.

PVN's ratings are capped by those of the sovereign under Fitch's GERC given the company's strong linkages with the State. PVN's SCP is assessed at 'bb+'.

A factor that could, individually or collectively, lead to the upgrade of EVN and PVN is positive rating action on the sovereign, provided the likelihood of State support does not deteriorate significantly, Fitch said.

EVNNPT's ratings are based on the consolidated profile of EVN, which owns 100 per cent of EVNNPT, in line with Fitch's parent and subsidiary rating linkage criteria. The consolidated rating approach is driven by strong linkages between EVNNPT and its parent. EVNNPT's SCP is assessed at 'bb+'. — VNS

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