S&P gives B to Vingroup notes

Standard & Poor's said it affirmed its B long-term corporate credit rating on Vingroup JSC.

The outlook is stable.

S&P also affirmed its axBB- long-term Asean regional scale rating on the Vietnam-based property developer.

At the same time, S&P assigned a B long-term rating to a proposed issue of senior notes that most of Vingroup's wholly owned subsidiaries guarantee.

"The rating affirmation reflects our expectation of subdued growth prospects for Vietnam's property market," said S&P credit analyst Kah Ling Chan in a news release. "It also reflects Vingroup's significant debt appetite and heightened risk on substantial foreign exchange exposure. The company's large operating scale with a low-cost land bank, established brand name in Vietnam, and modest, albeit growing, recurring income temper these weaknesses."

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