Fitch Ratings rates independent credit of EVNNPT at BB+

The National Power Transmission Corporation (EVNNPT) was rated by Fitch Ratings at BB for long-term foreign currency issuer default with “Stable outlook” and BB for credit rating in Senior Unsecured Debt. Particularly, the independent credit of EVNNPT was rated at BB+.

This rating result of EVNNPT helps the Corporation to consolidate its credit level and strengthen transparency, to be in line with international standards. This new development enables EVNNPT to diversify its financial resources and issue international bonds.

Ranking results of EVNNPT to create favorable conditions for the Corporation to attract investment capital

According to Fitch Ratings, EVNNPT’s ratings were based on the consolidated profile of Vietnam Electricity - the Parent company owning EVNNPT, under the criteria of ranking combination between the parent company and its subsidiary.

Previously, in June 2018, the Parent company - Vietnam Electricity was rated by Fitch Ratings as a long-term foreign currency issuer default rating (IDR) at BB level with a “stable outlook”. This ranking of EVN has corresponded to the national credit rating of Vietnam and EVN’s strategy on sustainable finance assisted by the WB.

For independent credit, Fitch Ratings rated EVNNPT at BB+, higher than IDR of its Parent company - Vietnam Electricity. EVNNPT has a monopoly position in dominating the market of power transmission of Vietnam; with low risk level in price and volume within the regulated scope under the legal framework, thereby increasing revenue and profit; capacity of partner risk harmonization; and healthy receivable sums.

The independent credit record of EVNNPT highly appreciated by Fitch Ratings partly thanks to the consistent application of the legal framework on the power sector reform including timely changes, which helps the rate to reflect the changes in costs. Additionally, EVNNPT has a strong connection with EVN - its Parent company and receives close attention and due support from the Government.

Mr. Dang Phan Tuong, Chairman of EVNNPT’s Member Council said: EVNNPT needs about USD 700 to 800 million to meet the investment demand under the Power Development Plan. The positive credit rating announced by Fitch has affirmed the strong financial position of EVNNPT and created favourable conditions for the Corporation in mobilizing international capital sources for construction investment in power transmission projects.

According to Mr. Ousmane Dione, World Bank Country Director for Vietnam, the power transmission network was the backbone of the power system, playing the crucial role in maintaining stable and sustainable supply of power for socio-economic development of Vietnam.

Following EVN, the positive credit rating will enables EVNNPT to assess new commercial capitals without the Government guarantee, thereby assisting traditional financial sources such as the state budget or ODA fund, serving new investment projects in order to solve difficulties of the power transmission system in integrating and developing wind and solar power sources.

  • 10/04/2019 05:56