Moody's rates Vietnam National Coal Ba3

Moody's Investors Service said it assigned a Ba3 local-currency corporate family rating to Vietnam National Coal and Mineral Industries Group.

The outlook is negative.

The rating takes into account the company's underlying creditworthiness and an uplift of two notches to reflect a view that its parent, the government of Vietnam, is likely to provide support in a distress situation, Moody's said.

The rating also reflects its close links with Vietnam, given that it is currently wholly and directly owned by the government and effectively fulfils a policy role for natural resource development, the agency said.

Key constraints for the rating include the company's largely debt-funded capital expenditure program, Moody's said.

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