S&P shifts Vingroup view to negative

S&P said it revised its outlook on Vingroup JSC to negative from stable.

“We revised the outlook because we expect Vingroup’s leverage to stay elevated over the next 12 to 18 months. This is due to the company’s fast debt-funded expansion into new ventures, especially automobiles, which require large upfront spending but will likely have losses in the initial ramp-up phase,” S&P said in a press release.

The agency affirmed the company’s B+ rating.

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