Fitch Ratings announces the first international credit rating for Petrovietnam Gas Joint Stock Corporation
Fitch Ratings - one of the leading three credit rating providers in the world- on March 2 announced the first international credit rating for Petrovietnam Gas Joint Stock Corporation (PV GAS, stock code : GAS) at 'BB' with a Positive outlook, on a par with the issuer default rating of its parent company, Vietnam Oil and Gas Group and Vietnam's credit rating.
As for the Stand-alone Credit Profile, PV GAS was rated at a higher level of “bb+”. The rating reflected PV GAS strong market position as the sole midstream gas distributor and one of the first to qualify for the liquefied natural gas trading (LNG), the largest importer and supplier of liquefied petroleum gas (LPG) – holding a nearly 70% market share. PV GAS is also evaluated to be well-positioned to benefit from PVN’s upstream expansion plan to increase production volumes.
The rating has been prepared and carried out by PV GAS over the past year in collaboration with the consulting team of Mizuho Bank Ltd’s Branch in Singapore.
Given the evaluation results, the rating provider Fitch Ratings has assessed overall the Corporation's development prospects for each production and business activity; the influence of the legal environment and stakeholders such as regulatory agencies, the parent company, important partners, etc.
The evaluation results have shown the Corporation’s potential as well as ability and development orientation in the future. The first rating of "BB" with a positive outlook is a great advantage of PV GAS, creating trust for partners/banks, thereby supporting its development process, especially the international expansion strategy. The 'BB' rating with a Positive outlook will also help PV GAS improve its ability to raise capital in the international market, diversify funding sources for investment projects.
The Fitch Ratings’ positive evaluation results confirm PV GAS strong potential as well as ability for development in the future, creating trust for partners, especially foreign partners.
Seeing the press release about PV GAS ranking results here:
Fitch Assigns Petrovietnam Gas First-Time 'BB' Rating; Outlook Positive (fitchratings.com)