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

Northern Power workers ensure the progress of construction investment projects, promptly meeting the increasing load demand to serve socio-economic growth and development. Photo: NPC — *Northern Power workers ensure the progress of construction investment projects, promptly meeting the increasing load demand to serve socio -economic growth and development. Photo: NPC*

Based on collected information and predictive analysis, Fitch Ratings has officially announced that EVNNPC has achieved a long-term foreign currency debt issuance credit rating (IDR) at 'BB+', with a "Stable" outlook.

EVNNPC's standalone credit profile is rated at 'BB+', on par with EVN's credit profile and Vietnam's sovereign credit rating (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.

1 Northern Electricity worker performs periodic maintenance of the electrical system. Photo: NPC — *Northern Power workers perform periodic maintenance of the power system. Photo: NPC*

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 ratio expected to range from 1.4x to 3.4x in the 2025–2028 period.

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.

It is known that since 2020, EVNNPC has been rated by Fitch Ratings at BB/Stable. In the following two years, 2021 and 2022, EVNNPC is rated at BB, with a "Positive" outlook. 2023 is the first year that EVNNPC's credit rating has been 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 by Fitch Ratings at BB+, with a "Stable" outlook.

Source: https://daibieunhandan.vn/tong-cong-ty-dien-luc-mien-bac-tiep-tuc-duoc-fitch-ratings-xep-hang-bb-on-dinh-10394968.html