This is a positive credit rating that helps PVN improve its ability to mobilize capital in the international market, diversify sources of capital mobilized for the Group's investment projects in the context of Government’s guarantee restrictions. This credit level affirms the Group's strong financial and business situation as well as positive business prospects in the future. It is the basis for ensuring the financial and business capacity of PVN, bringing confidence to domestic and foreign investors, financial institutions and strategic partners, especially in the period that PVN promotes current restructuring work.
Fitch Ratings' rating results are based on the close relationship of PVN with the State, solid market position, integrated operations from upstream, midstream to downstream including oil and gas exploration and production, refining petrochemical, fertilizer, distribution of gasoline, gas and electricity production. Fitch’s review states that “Fitch do not find PVN’s difficulty in mobilizing capital as one of the most important state-owned enterprises in Vietnam, even so we expect PVN will access to the international capital for its expansion plans”. Fitch also assesses the socio-political impact of PVN as very strong, any disruption to PVN's activities will affect the entire energy value chain in Vietnam.
Mr. Le Manh Hung, PVN President and CEO affirmed that: “This positive result confirms the close attention and direction of the Party and State leaders, the effective and close coordination of ministries and branches towards PVN, as well as solidarity, effort, devotion of all employees of the Oil and Gas industry in recent years. Credit rating result is also one of the bases for PVN to review and improve corporate governance, especially financial management, ensure that the ranking results are maintained and improved continuously in the future. PVN believes that, with the care and guidance of the Party and State leaders, the efforts of all employees, PVN will continue to further contribute to the successful development of Vietnam”.
Mr. Nirukt Sapru, CEO Vietnam, ASEAN and South Asia Cluster Markets at Standard Chartered Bank - the only rating consultant for PVN shared: “We are honored to support PVN in the international credit rating for the first time and congratulate PVN for the excellent results achieved. This is a testament to the robust and integrated financial management in PVN's business activities. Credit rating is a solid first step for PVN in mobilizing capital in the international market, and we believe it will help attract the attention of international investors. Standard Chartered is committed to working closely with Vietnam, the market that we have been in for 115 years. We are delighted to have taken advantage of an in-depth understanding of the local market with capacity and international expertise, and we are committed to continuing to support PVN in realizing its growth targets”.
In Vietnam, Fitch Ratings is also a national credit rating organization. It has conducted credit rating for Vietnam Electricity Group (EVN) and a number of other leading enterprises of Vietnam.