Fitch Ratings has assigned the Vietnam Oil and Gas Group's (PetroVietnam) first-time long-term foreign-currency issuer default rating (IDR) at 'BB' with a positive outlook (Photo: PetroVietnam)Hanoi (VNA) – Fitch Ratingshas assigned the Vietnam Oil and Gas Group's (PetroVietnam) first-timelong-term foreign-currency issuer default rating (IDR) at 'BB' with a positiveoutlook.
The agency has also assigned PetroVietnam asenior unsecured rating of 'BB' and standalone credit profile (SCP) at 'bb ',reflecting the company's high degree of integration, diversification andconservative financial profile.
In the statement, Fitch highlights therobust State linkages with PetroVietnam. PetroVietnam's annual targets are setand approved by Vietnamese Government and its management is State-appointed. PetroVietnamis also Vietnam's national oil company and benefits from exclusive rights tothe country’s oil and gas reserves by regulation. Fitch regards the supportrecord as 'Strong'.
Fitch assesses the socio-politicalimplications of a PetroVietnam default as 'Very Strong'. Any disruptions in PetroVietnam'soperations would have material implications for the entire energy value chainin Vietnam.
PetroVietnam General Director Le Manh Hungsaid the ratings will serve as a foundation for the group to review and improveits corporate administration in the coming time, especially financial targets.
Nirukt Sapru, Standard Chartered Bank’sChief Executive Officer of the Vietnam, ASEAN, and South Asia Cluster Markets,said the ratings assigned to PetroVietnam will help the company attract moreforeign investors, pledging that Standard Chartered will support PetroVietnamto realise its growth targets.
PetroVietnam holds interests in all of Vietnam'supstream oil and gas assets, accounts for about a third of the country'srefined product output, and supplies gas for power plants which make up about15 percent of the country's power generation. PetroVietnam also accounts forabout 80 percent of Vietnam's fertiliser production.
PetroVietnam's investment is projected torise significantly to 321 trillion VND (13.95 billion USD) over the next fiveyears, from 38 trillion VND last year. PetroVietnam estimates over half of itsexpected consolidated capex and investment will be used to develop its upstreamresources, mainly gas fields./.
The agency has also assigned PetroVietnam asenior unsecured rating of 'BB' and standalone credit profile (SCP) at 'bb ',reflecting the company's high degree of integration, diversification andconservative financial profile.
In the statement, Fitch highlights therobust State linkages with PetroVietnam. PetroVietnam's annual targets are setand approved by Vietnamese Government and its management is State-appointed. PetroVietnamis also Vietnam's national oil company and benefits from exclusive rights tothe country’s oil and gas reserves by regulation. Fitch regards the supportrecord as 'Strong'.
Fitch assesses the socio-politicalimplications of a PetroVietnam default as 'Very Strong'. Any disruptions in PetroVietnam'soperations would have material implications for the entire energy value chainin Vietnam.
PetroVietnam General Director Le Manh Hungsaid the ratings will serve as a foundation for the group to review and improveits corporate administration in the coming time, especially financial targets.
Nirukt Sapru, Standard Chartered Bank’sChief Executive Officer of the Vietnam, ASEAN, and South Asia Cluster Markets,said the ratings assigned to PetroVietnam will help the company attract moreforeign investors, pledging that Standard Chartered will support PetroVietnamto realise its growth targets.
PetroVietnam holds interests in all of Vietnam'supstream oil and gas assets, accounts for about a third of the country'srefined product output, and supplies gas for power plants which make up about15 percent of the country's power generation. PetroVietnam also accounts forabout 80 percent of Vietnam's fertiliser production.
PetroVietnam's investment is projected torise significantly to 321 trillion VND (13.95 billion USD) over the next fiveyears, from 38 trillion VND last year. PetroVietnam estimates over half of itsexpected consolidated capex and investment will be used to develop its upstreamresources, mainly gas fields./.
VNA
