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Fitch affirms Vietnam Electricity Northern Power Corporation at 'BB', outlook positive

Credit ratings agency Fitch Ratings has affirmed Vietnam Electricity Northern Power Corporation's (EVNNPC) long-term foreign-currency issuer default rating at 'BB' with a positive outlook.
The rating reflects EVNNPC's 'bb' Standalone Credit Profile (SCP), which is assessed at the same level as that on the parent, Vietnam Electricity (EVN, BB/Positive), especially in the context of both EVN and EVNNPC facing a host of difficulties and challenges in balancing their finance last year.

According to the agency, EVNNPC's credit profile benefits from its stable and diversified customer base with its top-20 customers accounting for around 9% of total revenue.

“We expect Vietnam's strong growth prospect to continue to drive power demand and revenue growth for EVNNPC,” it said.

As one of the five distribution companies under the EVN group, EVNNPC manages power operation and business in the 27 northern cities and provinces.

In 2020, the corporation was assigned a Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘BB’ with a Stable Outlook by Fitch Ratings./.