FiinRatings Monthly Newsletter – April 2023

FiinRatings would like to send you FiinRatings Monthly Newsletter – March 2023, with the most noteworthy updates on credit rating scale, in-depth analysis reports, and independent commentaries from our experts

 

Key points from FiinRatings Monthly Newsletter – April 2023:

HIGHLIGHTS

On March 7, 2023, Mr. Nguyen Quang Thuan, the Chairman of FiinGroup and CEO of FiinRatings, delivered a speech to attendees from international organizations, financial institutions, and Vietnamese enterprises at the Executive Dialogue Event, which was organized by Private Infrastructure Development Group (“PIDG”) and Guarantco. You can access speaking slides by FiinGroup’s representative HERE.

On March 20, 2023, FiinRatings, a member of FiinGroup, commemorated a 3-year journey since licensing approval. FiinRatings is the Credit Rating Agency (“CRA”) licensed by the Ministry of Finance in Vietnam under Decree 88/2014/ND-CP dated 26 September 2014 governing Credit Rating Agency services. For the past 3 years, with continuous efforts, FiinRatings has developed a rating culture for a sustainable capital market for Vietnam with certain achievements. Details about ratings activities and market support can be found HERE.

The event "Vietnam Credit Markets: Corporate Bond Default and Possible Spillover Effects" organized at 2:00 PM - 4:00 PM (Vietnam Time), Tuesday 25th April 2023 (language: English only) provided the most up-to-date information and market insights, with independent perspectives from domestic credit rating agency. Revisit our webinar and download presentation deck HERE

MARKET UPDATES

Vietnam's corporate bond market is currently experiencing turbulence, as several issuers have failed to meet interest and/or principal repayments for their bonds. This has raised concerns among investors regarding the extent of these defaults, the outlook for the situation, and the possible impacts on Vietnam’s financial market. To address these concerns, FiinRatings has provided the most up-to-date analysis and data-driven commentaries about the scale of the issue and possible spillovers to the capital market and the banking sector in particular. For more information, please see our Market Commentaries #4: A Study on Corporate Bonds Default in Vietnam HERE

In March, the corporate bond market recorded a reversal in issuance activity, with 13 bond lots worth nearly 27 trillion VND. Notable issuers came from the real estate sector, with 5 real estate developers, and the total value reached 23.7 trillion VND. Early redemption activities continued to increase. However, it is worth noting that the corporate bond outstanding value has increased for the first time since October 2022, after the issuance of Decree 65/2022/ND-CP. For more in-depth analysis, please refer to our report HERE.

LATEST RATING ACTIONS

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