The Impact of Credit Ratings on Vietnam’s Capital Market – Observations from FiinRatings

On November 4, 2024, FiinRatings successfully collaborated with S&P Global Ratings and the Asian Development Bank (ADB) to hold a kickoff seminar for the Capacity Building Project. At the event, Ms. Bá Th? Thu Hu?, FiinRatings' Commercial Director, delivered a presentation on "The impact of Our Credit Ratings on Vietnam's Capital Markets".

On November 4, 2024, FiinRatings successfully collaborated with S&P Global Ratings and the Asian Development Bank (ADB) to hold a kickoff seminar for the Capacity Building Project. At the event, Ms. Bá Thị Thu Huệ, FiinRatings' Commercial Director, delivered a presentation on "The impact of Our Credit Ratings on Vietnam's Capital Markets". ​

As one of the pioneering credit rating agencies in Vietnam, here are key points shared by the FiinRatings representative on this topic: 

• Over 100 issuing enterprises in the market have now been rated by domestic licensed credit rating agencies (including FiinRatings, VIS, Saigon Ratings), marking an initial recognition of a "rating culture" in the market. Issuers have been integrating credit ratings into diverse corporate activities, beyond merely supporting capital raising. 

• Rated enterprises have issued a total of 121.70 trillion VND in private bonds for the period from 1 January 2024 to 31 August 2024. Among these, companies rated by FiinRatings accounted for approximately 67% of the total private placement bond value. Ms. Huệ clarified that this figure represents bonds issued by rated companies and does not mean the ratings for the bonds themselves. Currently, Vietnam has yet to see publicly disclosed rated bonds, although FiinRatings is in the process of rating bonds guaranteed by major financial institutions and expects to release these ratings soon. 

• On the investor side, FiinRatings' ratings and related analysis have been gradually adopted by various investors, including funds, insurance companies, and some banks, as references for risk assessment, portfolio allocation, and interest rate benchmarks. 

• Beyond credit ratings, FiinRatings has taken initial steps in green bond verifications and green bond external reviews in Vietnam by the announcing post-issuance verification for BIDV's 2.5 trillion VND green bond in alignment with the green principles of the International Capital Market Association (ICMA) and few other to be released soon. 

FiinRatings aims to become the most impactful credit rating agency in Vietnam, working towards a transparent and efficient capital market. Though the credit rating sector is still nascent in the country, FiinRatings prides itself on the strong foundation provided by its parent company, FiinGroup, a leader in financial analysis in Vietnam. With backing from international organizations, FiinRatings is committed to delivering accurate and transparent assessments to both companies and investors. 

For more information, you can get free access to the presentation deck by clicking on the link: HERE. 

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