S&P upgrades Vingroup credit outlook to 'B+' from 'B'
December 05, 2017 | 08:00 AM GMT+7
The global credit rating firm Standard & Poor’s (S&P) has raised its long-term corporate credit rating on Vingroup Joint Stock Company to 'B+' from 'B' to highlight its good sales execution, scale expansion and stable outlook.
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Vingroup has strengthened its market position through successful sales execution and significant expansion of its operating scale over the past two years.
S&P expects the company will maintain its leading market position in Vietnam and its leverage at the current level over the next two years.
Vingroup's cumulative contracted sales of about VND34 trillion as of June 30, 2017, are on track with S&P's full-year projection of VND74 trillion. In the past two years, the company sold 14,000-15,000 units per year garnering about 24% market share in key operating cities.
Vingroup is expected to continue the sales momentum in the next two years backed by a well-established brand name and a strong launching project pipeline including VinCity, Vinhomes The Harmony, and Imperia.
"We believe Vingroup's property sales will increase to VND70 trillion-VND75 trillion over 2017-2019, from VND31 trillion two years ago," according to S&P.
S&P anticipated that the developer will continue to expand its operating scale and diversity through satisfactory property sales execution. Leveraging on its established brand name, the company is able to achieve an above 90% take-up rate before construction is completed.
"The stable outlook reflects our expectation that Vingroup will continue to have solid property sales and maintain its current financial position while pursuing its growth strategy over the next 12-24 months." said the report.
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