FiinRatings Monthly Newsletter - August 2022

FiinRatings Newsletter - August 2022 - a monthly round-up of the most noteworthy updates and analyses across FiinRatings

 

FiinRatings Newsletter - August 2022 - a monthly round-up of the most noteworthy updates and analyses across FiinRatings

HIGHLIGHTS

On 27^th June 2022, FiinRatings entered a Technical Collaboration Partnership ("Partnership") with S&P Global Ratings, the world's leading credit rating agency. The two parties officially signed a Cooperation Agreement at FiinGroup's Head Office in Hanoi.

The Partnership includes the support and technology transfer of analytical expertise and commercial and compliance operations from S&P Global Ratings to FiinRatings. Specifically, S&P Global Ratings will implement phase 2 of the technical assistance project to assist in the credit rating processes of financial institutions and non-financial industries in Vietnam and in the commercial and compliance aspects toward international standards and practices. Read more details about Technical Collaboration Partnership HERE.

Mr. Paul Coughlin, Chairman of the Credit Rating Committee, shared his insights on the importance of domestic credit rating in contributing to the sustainable development of Vietnam's capital market. View detail of the interview HERE.

The representatives of S&P Global Ratings and FiinRatings also had meetings to discuss with state management agencies:

• On 25th July 2022, S&P Global Ratings and FiinRatings met leaders of the Ministry of Finance at the headquarters of the Ministry of Finance, and Mr. Nguyen Duc Chi, the Vice Minister, presided over the meeting. The overall objectives of the meeting were to discuss thoroughly the main topics related to credit rating activities, including the development of credit rating services in Vietnam, the Technical Collaboration Partnership between FiinRatings and S&P Global Ratings, and the proposal contributing to the sustainable development of the corporate bonds market in general and domestic credit rating service in particular. Explore key takeaways of the meeting HERE.
• On 27th July 2022, S&P Global Ratings and FiinRatings met with leaders of The State Bank of Vietnam at the headquarters of the State Bank of Vietnam. On this occasion, two parties actively discussed the application of domestic credit rating results in Vietnam to support the SBV and the banking sector in credit risk management, especially in the corporate bonds market. Delegations also discussed activities to promote credit ratings of credit institutions for the sustainable development of Vietnam's capital market were also covered in the meeting. Explore key takeaways of the meeting HERE.
• Also, on 27^th July 2022, S&P Global Ratings and FiinRatings met leaders of the State Securities Commission of Vietnam. They discussed the topics related to the potential and challenges of Vietnam's corporate bond market, the development of the domestic credit rating sector, and proposals for practical cooperation and information exchange, thereby promoting the development of corporate bonds and the domestic credit rating. Explore key takeaways of the meeting HERE.

MARKET UPDATES

In July, the scale of bond issuance decreased sharply, with the issuance value of only nearly 22 trillion VND, down 65% YoY and 48.23% MoM respectively. Despite the modest issuance value, FiinGroup's data shows that 58 listed real estate companies have maintained loan balance growth (including bank credits and bonds) at 25.1% for the first six months of 2022. The statistic shows businesses can still access bank loan capital, although the bond channel has been quiet.

View detail of our Corporate Bonds Bulletin HERE.

LATEST RATING ACTIONS

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