The "BB" rating result shows the great efforts of the Northern Power Corporation in improving their production and business performance, in the context that EVNNPC in particular and EVN in general are facing many difficulties and challenges in financial balance.
Fitch Ratings said that EVNNPC has a close connection with the parent company EVN. EVN has a far-reaching influence on the business plans, profits and financial performance of EVNNPC. EVN approves investment plans and budget of EVNNPC as well as appoints key leadership positions.
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Fitch Ratings affirmed that EVNNPC's credit profile is stronger relative to its standalone financial profile, with low-risk thanks to diversified and stable customers. In which, the 20 largest customers contribute about 9% of total revenue.
EVNNPC is one of five power distribution corporations under EVN, responsible for managing, operating, and selling electricity in 27 Northern provinces/cities. The Corporation has had the highest growth rate of commercial electricity in the whole of EVN for many years in a row. Therefore, the need to invest in power projects to promptly meet the load growth is very large. The credit rating by Fitch Ratings for EVNNPC at BB with a positive outlook will make an important contribution to EVNNPC’s accessibility to foreign financial resources; towards full autonomy in the financial arrangement in order to implement power projects in the future.
Previously, in 2020, EVNNPC was rated BB with a stable outlook by Fitch Ratings; In 2021, the rating was at BB/positive, equal to EVN's credit rating and Vietnam's sovereign credit rating.