S&P rates Vingroup notes B

Standard & Poor's said it assigned a B long-term corporate credit rating to Vingroup JSC, along with an axBB- Asean regional scale rating.

The agency also assigned a B rating to its proposed issue of senior unsecured notes, which are guaranteed by most of Vingroup's wholly owned subsidiaries and 98.36%-owned subsidiary Royal City Real Estate Development and Investment JSC.

The outlook is stable.

The ratings reflect the weak outlook for Vingroup's property sales and the collection risks on its outstanding receivables, S&P said.

The ratings also consider the company's significant debt appetite, heightened risk tolerance on significant foreign-exchange exposure and credit support for some of its property buyers, the agency said.

Vingroup's large operating scale with a low-cost land bank, established brand name in Vietnam and modest, albeit growing, recurring income from retail malls, offices, hospital, hotels and recreational services temper these weaknesses, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.