Head office of Southern Power Corporation. Photo source: SPC
This is the first time that EVNSPC has participated in the international credit rating; and is the fourth distribution corporation under Electricity of Vietnam (EVN) to conduct credit rating, after Hanoi Power Corporation (EVNHANOI), Ho Chi Minh City Power Corporation. (EVNHCMC) and Northern Power Corporation (EVNNPC).
Rating of EVNSPC is evaluated on the basis of the consolidated credit profile of EVN – a unit owning 100% of EVNSPC’s equity, in accordance with the criteria by Fitch on evaluating the relationship between the parent company and its subsidiary company.
According to representatives of EVNSPC, during the past time, the corporation has made full use of the ODA preferential loans to increase investment in new investment, renovation, expansion and upgrading of the grid system in 21 southern provinces and cities, in order to well implement the goals of developing social security and ensuring national energy security; specially giving priority to investment in rural power supply, border, island areas.
Currently, Vietnam has become a middle-income country. In the context of the reduction of ODA capital, as well as to prepare well for the international economic integration, EVN has directed the Power Corporations to evaluate the credit rating in order to have a legal strict basis in easy access and complete autonomy to mobilizing domestic and international loans for investment - construction and production - business.
Implementing the direction of EVN, since July 2020, EVNSPC has cooperated closely with partners: Mizuho Bank, Fitch Ratings, World Bank (WB) to implement international credit rating procedures. Based on the above assessment and consultation with the consultants, Fitch Ratings has officially announced the international credit rating of EVNSPC "issuer of long-term foreign currency debt" (IDR) at BB, with "stable" prospect, on par with Vietnam's national ratings and the rating results of the Parent Company - EVN.