Moody's may lower Vinacomin

Moody's Investors Service said it placed on review for possible downgrade the Ba3 corporate family rating of Vietnam National Coal-Mineral Industries Holding Corp. Ltd.

At the same time, Moody's said it has withdrawn the provisional Ba3 rating assigned to Vinacomin's proposed senior unsecured dollar notes following the postponement of the issuance.

This review has been prompted by the reported potential restructuring of Vietnam Shipbuilding Industry Group and its chairman's comment on a possible delay in the repayment of a foreign currency loan, according to the agency.

"Moody's expectations of such high support for Vinacomin have been tempered by the developments at Vinashin, the state-owned shipyard. While Moody's views Vinacomin as more important to Vietnam, when compared with Vinashin, the review will need to consider whether the situation at Vinashin is company-specific, or reflective of a more commercial approach to the control and support of the state-owned businesses in Vietnam," said Alan Greene, a Moody's vice president and senior credit officer.

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