Standard Poor’s upgrades credit rating for Vingroup
Standard Poor’s upgrades credit rating for Vingroup
Standard & Poor’s (S&P) Global Ratings has upgraded the long-term credit rating for Vingroup from “B” to “B+”, the highest rating in Viet Nam’s real estate industry.
From the beginning of 2017 to now, Vingroup was also the only real estate company in South East Asia to be upgraded by S & P.
According to S & P, Vingroup is rated to have a better market position than some of its peers and the same ranking in Southeast Asia.
Specifically, in real estate, Vingroup is forecast to reach sales of VND74 trillion for the year 2017. Last year, the group sold some 15,000 apartments, villas and townhouses, accounting for some 24 per cent of the high-end market share in major cities.
Vingroup’s sales is projected to continue growing in the next two years, thanks to the strategy of diversifying products across all segments, from mass to high-end, especially with the establishment of the brand, VinCity. With the positive improvement of Việt Nam’s economy, S&P forecasts sales of Vingroup’s real estate will reach VND70-75 trillion between the 2017 and 2019 period, double the group’s sales revenue in the previous years.
Besides real estate for sale, Vingroup’s real estate for lease is also expanding. Vincom Retail is maintaining its position as the biggest commercial centre operator in Việt Nam, accounting for 60 per cent of the market share in Ha Noi and HCM City, with nearly 1.2 million sq.m of retail floor area.
"Vingroup has a much better market share in major operating segments being the leading player and a significantly larger operating scale. The company’s operations are also more diversified than peers’, with 15-20 per cent of gross profit from the more stable shopping mall leasing, retail, hospitality, and healthcare segments. We therefore assign a positive score to Vingroup in our comparable rating analysis," S&P stated in the report.
With a strong financial status and a well-developed network of operations over the years, S&P forecasts that Vingroup will be able to meet its business expansion, including the auto industry.
Previously, Vingroup was also given a B + rating by Fitch Ratings with stable prospects. Being highly appreciated by international organisations has confirmed the growing credibility of the group and it is the foundation for a belief that Vingroup’s business will continue do well in the future.
