Northern Power continues to be rated BB+/Stable by Fitch Ratings

VTV.vn - Northern Power Corporation (EVNNPC) said that credit rating organization Fitch Ratings has just announced the 2024 credit rating for EVNNPC at BB+/Stable.

Based on collected information and predictive analysis, Fitch Ratings has officially announced that EVNNPC has achieved the long-term foreign currency debt issuance credit rating (IDR) at 'BB+', with a "Stable" outlook. EVNNPC's independent credit profile is rated at 'BB+', equal to the credit profile of Vietnam Electricity Group EVN and the national credit rating of Vietnam (BB+/Stable).

According to Fitch Ratings, EVNNPC's rating is considered equivalent to that of its parent company, EVN, as EVN is a state-owned company that owns 100% of EVNNPC and is based on a high level of support incentives, in line with Fitch's parent company and subsidiary linkage assessment criteria.

Regarding the operating outlook, Fitch Ratings forecasts that electricity demand in Vietnam will continue to grow strongly, with an estimated increase of 4.5% in 2025 and about 7% in the medium term. EVNNPC benefits from this trend thanks to its wide and diverse customer base, high debt collection rate and low counterparty risk.

Fitch Ratings also noted that EVNNPC will maintain a high level of investment (Capex) in the coming period to upgrade the grid, build transformer stations and transmission lines to meet increasing electricity demand and integrate more renewable energy sources, in line with Power Plan VIII. Despite large investment expenditures, EVNNPC's financial leverage remains low, with the net debt/EBITDA (earnings before interest, taxes, depreciation and amortization) ratio expected to range from 1.4x to 3.4x in the period 2025 - 2028.

Commenting on the rating results, EVNNPC’s representative said: “The positive assessment from Fitch Ratings demonstrates the confidence of international organizations in EVNNPC’s financial capacity, management and strategic role in Vietnam’s power system. We will continue to maintain financial discipline, improve investment efficiency and ensure safe and stable power supply for the Northern region.”

Fitch Ratings' assessment of EVNNPC as being on par with EVN affirms EVNNPC's financial position and important strategic role, while creating a favorable foundation for mobilizing investment capital to develop modern and sustainable power infrastructure, contributing to Vietnam's energy transition and green economic development goals.

In 2020, EVNNPC was rated BB/Stable by Fitch Ratings. In the following two years, 2021 and 2022, EVNNPC was rated at BB with a "Positive" outlook. 2023 is the first year EVNNPC's credit rating was upgraded to BB+ with a "Stable" outlook. Up to now, at the end of 2024, for the second consecutive year, EVNNPC has continued to be rated BB+ with a "Stable" outlook by Fitch Ratings.

Source: https://vtv.vn/dien-luc-mien-bac-tiep-tuc-duoc-fitch-ratings-xep-hang-bb-on-dinh-100251108061757665.htm