Fitch Ratings rates independent credit of PVN at BB+

On 13th September 2019, Fitch Ratings announced the results of rating PVN’s independent credit at BB+; long-term foreign currency issuer default rating (IDR) for the first time at “BB” level with “Positive outlook”. This IDR rating of PVN corresponds to the national credit rating of Vietnam (BB/ Positive outlook).

This is a positive credit rating that helps PVN improve its ability to mobilize capital in the international market, diversify sources of capital mobilized for the Group's investment projects in the context of Government’s guarantee restrictions. This credit level affirms the Group's strong financial and business situation as well as positive business prospects in the future. It is the basis for ensuring the financial and business capacity of PVN, bringing confidence to domestic and foreign investors, financial institutions and strategic partners, especially in the period that PVN promotes current restructuring work.

Fitch Ratings rates independent credit of PVN at BB+.

Fitch Ratings' rating results are based on the close relationship of PVN with the State, solid market position, integrated operations from upstream, midstream to downstream including oil and gas exploration and production, refining petrochemical, fertilizer, distribution of gasoline, gas and electricity production. Fitch’s review states that “Fitch do not find PVN’s difficulty in mobilizing capital as one of the most important state-owned enterprises in Vietnam, even so we expect PVN will access to the international capital for its expansion plans”.  Fitch also assesses the socio-political impact of PVN as very strong, any disruption to PVN's activities will affect the entire energy value chain in Vietnam.

In Vietnam, Fitch Ratings is also a national credit rating organization. It has conducted credit rating for Vietnam Electricity Group (EVN) and a number of other leading enterprises of Vietnam.