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11/02/2016 11:36

November 1st, 2016, Standard & Poors upgraded Vingroup’s credit rating outlook to Positive from Stable; both Both Standard & Poors and Fitch Ratings affirmed Vingroup’s international credit ratings in the 2016 annual review.

Vingroup received positive reviews and affirmations of the respective “B” and “B+” credit ratings from two of the top international credit rating agencies, Standard & Poors (S&P) and Fitch Ratings (Fitch). Specifically, S&P signaled that they could consider upgrading Vingroup to a higher rating in the next 12-18 months if Vingroup consolidates its record of rolling out its property development and retail operations, while maintaining a prudent and stable financial policy.

In their reports, both S&P and Fitch acknowledged Vingroup’s strong performance in real estate sales and management in 2015 – 2016 and the Group’s effort in expanding the Vincom shopping mall portfolio and Vinmart and Vinmart+ store network, in order to achieve operational efficiency and more predictable profitablity levels.

Fitch noted: “the company's robust performance in its property development business mitigates the losses in its nascent consumer retail business. As result, we expect Vingroup to maintain its current moderate net financial leverage. Deleveraging to a lower level may be possible when its retail business matures and starts being profitable”. Similarly, S&P stated: “We expect the steady trend seen in Vingroup's past quarters' property sales and growing diversification of earnings will continue in 2017; the company's robust operating cash flow will largely cover increasing capital expenditure needs for expansion. We therefore forecast the company's capital structure will improve on sustained and more predictable free operating cash generation.”

For the first 9 month of 2016, Vingroup recorded net profit after tax of 3,094 billion dong, more than 3 times compared to the same period in 2015, and achieved 103% of the profit target approved during the 2016 AGM. An outlook upgrade and ratings affirmation by the leading agencies are welcome recognition of the Group’s relentless effort to become one of the top private companies in Vietnam.


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S&P and Fitch are two of the most reputable rating agencies, that have rated international debt issuers and securities traded in the world’s most developed financial markets. In Vietnam, since 2005, S&P and Fitch have rated USD bonds issued by the Ministry of Finance, and assigned credit ratings to the largest corporates and financial institutions.

Vingroup Joint Stock Company, with a market capitalization of 118 trillion dong as of 30 September 2016, is one of the largest listed companies in Vietnam. The Group bases its strategy on the principles of sustainability and professional management to develop and operate residential, retail, hospitality, and entertainment projects throughout Vietnam. Vingroup has also led investments in social infrastructure businesses such as healthcare, education and agriculture. These social infrastructure businesses are aimed at improving the standards of living in communities throughout Vietnam, and allow the Group to deliver on its mission of “To create a better life for Vietnamese people”.