EVNHANOI receives with International Credit rating of BB

Hanoi Electricity Corporation (EVNHANOI) has been rated by Fitch Ratings of BB - one of the three most prestigious credit rating organizations in the world - the international credit rating of BB. The results were presented at the online publication between the World Bank, Fitch Ratings, Mizuho consulting unit and EVNHANOI, 23 July 2020.

This is the first time EVNHANOI has participated in the international credit rating evaluation; and also the first corporation under Vietnam Electricity (EVN) to perform the credit rating.

Accordingly, Fitch Rating has rated EVNHANOI based on the following contents: The application of appropriate methods to state-owned power distribution enterprises; the detailed report on the credit rating of EVNHANOI, etc., which clearly indicates the strengths, weaknesses, evaluation methods and basis for credit rating results; conducting annual rating and additional ratings if EVNHANOI needs to issue bonds and debt instruments in the future.

EVNHANOI is the first distribution corporation under EVN to be receives  international credit rating

Fitch Ratings rated the unit, based on the legal framework of electricity price policy, has ensured cost and performance for EVNHANOI, contributing to improving the high financial capacity ratios of EVNHANOI. EVNHANOI has a strong connection with the parent company - EVN, in addition, it receives close attention and support from the Government. Based on the above rating results and consulted with the consulting unit, Fitch Ratings has officially announced EVNHANOI received international credit rating of BB, which is equal to Vietnam's national rating and ranking results of Parent company - EVN.

According to Mr. Nguyen Anh Tuan - Chairman of EVNHANOI's Member Board, this result is an important step for EVNHANOI towards full autonomy in raising capital to finance future projects. Thereby, EVNHANOI can increase its funding by approaching international capital markets; At the same time, EVNHANOI will optimize its capital structure to match the nature of its assets, approach the international debt capital market to issue long-term bonds, and diversify funding sources.

In addition, the international credit rating will exert good effect in the loan limit, interest rates, loan security forms, giving EVNHANOI an advantage in raising capital even in the form of bond issuance and bank loans.

  • 24/07/2020 02:27
  • evn.com.vn