Business
Fitch Ratings confirms creditworthiness of National Power Transmission Corporation
The company needs to invest around $700-800 million annually to meet its investment requirements.
The standalone rating of Vietnam’s National Power Transmission Corporation (EVNNPT) is BB+, according to Fitch Ratings.
Having attained a long-term foreign-currency issuer default rating of ‘BB’ with stable outlook and a senior unsecured rating of ‘BB’, EVNNPT’s ratings align with both Vietnam’s sovereign rating and that of the national power utility, Vietnam Electricity, last June.
World Bank said that Fitch’s rating released on April 10, 2019 of the creditworthiness of EVNNPT further demonstrates the strong credit profile of the country’s power companies.
EVNNPT’s rating reinforces its creditworthiness and enhances its transparency, in line with international standards.
This development enables EVNNPT to diversify financing sources and issue international bonds.
EVNNPT is now better positioned to deliver on its mission to ensure safe, uninterrupted, and stable power transmission to serve the needs of Vietnam’s people and businesses, World Bank stated.
According to Dr. Dang Phan Tuong, chairman of board of directors of EVNNPT, the company needs to invest around $700-800 million annually to meet its investment requirements under the Power Sector Development Plan 7.
“The positive credit rating by Fitch Ratings has confirmed the strong financial standing of EVNNPT and will facilitate its penetration into the international capital market to raise capital,” he said.
Ousmane Dione, country director for the World Bank in Vietnam, stated that the positive credit rating will enable EVNNPT to access new sources of commercial financing without sovereign guarantees.
That can complement traditional sources of financing such as government budget or ODA in further investments to address transmission network bottlenecks to integrate and scale up solar and wind energy.
He emphasized that the electricity transmission network is the backbone of a power system and of critical importance to provide reliable and sustainable power for Vietnam’s socio-economic development.
EVNNPT’s credit profile is supported by its dominant market position as a monopoly player in Vietnam’s electricity transmission sector, limited price and volume risk under the regulatory framework which enhances its revenue and profit visibility, pooled counterparty risk, and strong receivables.
EVN achieves its first and positive credit rating from Fitch Ratings
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