The world's prestigious credit rating organization Fitch Ratings (Fitch Organization) has just upgraded the credit rating for the Northern Power Corporation (EVNNPC) in 2023 to BB+, with a "Stable" outlook.
Based on collected information and predictive analysis, Fitch has just announced that EVNNPC has achieved the long-term foreign currency debt issuance credit rating (IDR) at 'BB+', with a "Stable" outlook. EVNNPC's independent credit profile is rated at 'BB+', equal to the credit profile of Vietnam Electricity Group (EVN) and Vietnam's national credit rating (BB+/Stable).
According to Fitch, EVNNPC's rating is considered equivalent to that of its parent company, EVN, because EVN is a state-owned company that owns 100% of EVNNPC and is based on a high level of support incentives consistent with Fitch's parent company and subsidiary linkage assessment criteria.
Bringing electricity to remote areas of Ha Giang province
The "BB+" rating shows EVNNPC's great efforts in improving the efficiency of production and business activities, especially in the context of 2023, when the Corporation in particular and EVN in general will face many difficulties and challenges in financial balance.
Fitch also affirmed that EVNNPC's independent financial profile is better than its credit rating and has low risk, debt collection rate is 100%; advantage is due to diverse and stable customers, of which the 20 largest customers contribute about 10% of total revenue.
According to Fitch, Vietnam's strong growth potential with expected strong GDP growth of 6.3% - 6.5% in the 2025-2026 period will boost electricity demand and increase revenue for EVNNPC.
Power workers repair the power grid
EVNNPC is one of the 5 Power Distribution Corporations under EVN, responsible for managing, operating and selling electricity in 27 provinces/cities in the North. For many consecutive years, the Northern Power Corporation has been the unit with the highest growth rate of commercial electricity in the whole EVN. Therefore, the demand for investment in power projects to promptly meet the growth of load is very large. The credit assessment and rating of Fitch at BB+ with a Stable Outlook will significantly contribute to helping EVNNPC to soon arrange foreign investment capital; towards complete autonomy in capital mobilization, to implement power projects in the future.
Previously, in 2020, EVNNPC was first rated by Fitch at BB/Stable; in the following two years, 2021 and 2022, EVNNPC was rated at "BB" - Positive Outlook. In 2023, EVNNPC's credit rating was upgraded to BB+ by Fitch for the first time, with a "Stable" outlook.
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