Moody’s lowers Vinacomin

Moody's Investors Service said it downgraded corporate family rating of Vinacomin Holding Corp. Ltd. to B3 from B2.

The outlook is stable.

This action concludes the review initiated on Jan. 22, when Moody's placed the B2 rating on review for downgrade, reflecting its effort to recalibrate ratings in the mining portfolio to align with the fundamental shift in the credit conditions of the global mining sector.

"The downgrade to B3 reflects Vinacomin's ongoing dependence on debt-funded capital expenditures, which raised its leverage to around 5.0x at the end of 2015 and will drive a further increase in leverage during 2016," Moody's vice president and senior analyst Brian Grieser said in a news release.

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