Moody's: Vinacomin notes Ba3

Moody's Investors Service said it assigned Vietnam National Coal and Mineral Industries Holding Corp. Ltd.'s proposed senior notes issuance a provisional Ba3 rating.

The outlook is negative.

The Ba3 rating considers Vinacomin's underlying credit strength and the view that its parent, the Government of Vietnam, is likely to provide support to the company in a distress situation, Moody's said.

However, the rating also recognizes the largely debt-funded nature of Vinacomin's capex program, the likelihood that the company will forgo its lucrative coal exports business to support growing domestic power generation needs and emerging market risks, the agency said.

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