PV Power enjoys “BB” rating for third consecutive year
VOV.VN - Fitch Ratings has affirmed that PetroVietnam Power Corporation (PV Power)’s long-term foreign-currency issuer default rating (IDR) of “BB” with a positive outlook.
This marks the third consecutive year that PV Power has received a “BB” rating with a positive outlook, the highest possible rating that a Vietnamese company can reach.
The rating is based on PV Power's Standalone Credit Profile (SCP) assessment of “BB” and is on a par with the IDR of its 80% parent, Vietnam Oil and Gas Group (PVN) which has a “BB+” rating.
PV Power's SCP is driven by its strong market position as the nation’s second-largest electricity producer, duly accounting for roughly 5% of the country’s total electricity output and 5% of installed capacity in 2022.
It also benefits from diversified fuel sources and long-term power-purchase agreements (PPAs) with Vietnam Electricity (EVN), which has a rating of “BB+”, for more than 80% of its electricity output and a strong financial profile.
However, EVN's IDR constrains PV Power's SCP, even though PV Power's financial profile is stronger than its SCP assessment indicates. The positive outlook is therefore driven by the positive outlook on EVN's IDR.
The rating is expected to help the firm to gain more positive attention from international credit institutions. Currently, PV Power is investing in many projects with large capital needs such as Nhon Trach 3 & 4 Power Plants and a power project using imported liquefied natural gas (LNG) in Quang Ninh.
As of the end of the first quarter the year, PV Power’s total electricity production had surpassed four billion kWh, duly exceeding its plan by 16%, with a revenue of VND7.91 trillion, equal to US$337.04 million, 20% higher that its quarterly plan and up 10% on-year.
This marks the third consecutive year that PV Power has received a “BB” rating with a positive outlook, the highest possible rating that a Vietnamese company can reach.
The rating is based on PV Power's Standalone Credit Profile (SCP) assessment of “BB” and is on a par with the IDR of its 80% parent, Vietnam Oil and Gas Group (PVN) which has a “BB+” rating.
PV Power's SCP is driven by its strong market position as the nation’s second-largest electricity producer, duly accounting for roughly 5% of the country’s total electricity output and 5% of installed capacity in 2022.
It also benefits from diversified fuel sources and long-term power-purchase agreements (PPAs) with Vietnam Electricity (EVN), which has a rating of “BB+”, for more than 80% of its electricity output and a strong financial profile.
However, EVN's IDR constrains PV Power's SCP, even though PV Power's financial profile is stronger than its SCP assessment indicates. The positive outlook is therefore driven by the positive outlook on EVN's IDR.
The rating is expected to help the firm to gain more positive attention from international credit institutions. Currently, PV Power is investing in many projects with large capital needs such as Nhon Trach 3 & 4 Power Plants and a power project using imported liquefied natural gas (LNG) in Quang Ninh.
As of the end of the first quarter the year, PV Power’s total electricity production had surpassed four billion kWh, duly exceeding its plan by 16%, with a revenue of VND7.91 trillion, equal to US$337.04 million, 20% higher that its quarterly plan and up 10% on-year.