Moody's cuts Vinacomin to B2

Moody's Investors Service said it downgraded Vietnam National Coal and Minerals Holding Corp. Ltd.'s corporate family rating to B2 from Ba3.

The outlook is stable.

The downgrade follows the decision to downgrade Vietnam's sovereign rating to B1/negative and the expectation of a lowering in the Vietnam government's willingness and ability to support Vinacomin in distress, the agency said.

The rating is supported by Vinacomin's relatively strong financial profile, its vital role in the power-hungry domestic economy and the highly supportive nature of the regulatory and political environment, Moody's said.

The rating is constrained by Vinacomin's largely debt-funded capex program; the standard, quality and timeliness of Vinacomin's consolidated reporting; issues pertaining to the regulatory environment and the emerging market risks arising from operating in Vietnam; and the limited degree of clarity regarding long-term shareholder intentions and strategic direction, Moody's said.

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