Fitch assesses oil firm PVN’s standalone credit profile at BB+

Monday, 2019-09-16 16:13:47
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NDO - The credit ratings agency Fitch Ratings has assessed the standalone credit profile of the state-owned Vietnam National Oil and Gas Group, commonly known as PVN, at BB+.

Fitch said in a statement released on September 13 that such a rating reflects the company’s high degree of integration, diversification and conservative financial profile.

It added that the assessment is supported by PVN's position as Vietnam's largest upstream oil and gas producer, vertical integration across midstream and downstream, and stable gas distribution and power earnings.

The ratings agency also assigned PVN’s long-term foreign-currency issuer default rating at BB with a positive outlook.

Fitch said that it does not foresee much difficulty in PVN raising funds in light of its status as one of Vietnam's most important state-owned enterprises although the Vietnamese company may also need to access international debt funding due to its expansion plans.

The positive rating is expected to help the state oil firm enhance its capital raising capacity, diversify fundings for its projects and affirm its ongoing strong performance and solid prospects.

It will bolster the confidence of investors and strategic partners, especially as PVN is pushing through with its restructuring.

PVN’s operations range from upstream oil and gas production to refining, fertiliser, oil marketing, gas distribution and power generation.