The rating reflects PV Power’s Standalone Credit Profile (SCP) of ‘BB’ which is on par with the IDR of its 80% parent, Vietnam Oil and Gas Group (PVN), which is also rated as ‘BB’ with a positive outlook. PV Power’s financial profile appears stronger than a ‘BB’ level, whilst its business profile is underpinned by stable and long-term power purchase agreements (PPA) due to EVN being the main off-taker. Indeed, PV Power’s positive outlook in its rating is in line with that of EVN’s rating, meaning EVN’s rating is a major constraint on PV Power’s SCP.
All rankings have been evaluated by Fitch Ratings in a thorough and objective manner over a period of time longer than one year. Through the assessment, PV Power has been able to display its potential, its ability, along with its future development orientation.
Despite facing numerous difficulties over the course of last year, along with the first half of this year due to the impact of the novel coronavirus (COVID-19) pandemic, PV Power has made every effort to ensure the stable, safe, and efficient operation of its power plants, thereby fulfilling all set targets.
Last year saw the company’s total commercial electricity output reach 19,166 billion kWh, meeting 103% of its plan for last year and earning VND30,246 billion in revenue in the process, fulfilling 107% of its plan.
With corporation’s pre-tax profit reaching VND 2,875 billion, it fulfilled 120% of its plan and contributed VND1,687 billion to the State budget, meeting 118% of the scheme.
After being given the international credit rating of “BB” with a positive outlook, PV Power has become the first Vietnamese electric power producer and the first PetroVietnam producer to carry an international credit rating.
The ‘BB’ credit rating with a positive outlook will therefore help PV Power to improve its ability to mobilise capital in international markets, whilst also diversifying capital mobilisation for investment projects.
Furthermore, this credit rating has also affirms PV Power’s strong business and financial situation, along with its positive business prospects in the future which will serve as the foundation that ensures the company’s financial and business capacity. This will contribute to winning the trust of shareholders, investors, and strategic partners.