Fitch Ratings has given Vietnamese real estate developer VinHomes a ‘-BB’ Long-Term Issuer Default Rating with a stable outlook. The ‘-BB’ rating also applies to proposed US dollar senior unsecured note issue, according to a release from the firm.
The company goes on to point out that the rating might have been higher but for VinHomes’ parent company VinGroup. It says VinGroup has a weaker credit profile due to increasing investments in its other electric car making subsidiary VinFast. These investments are in line with “ambitious growth plans internationally, where competition is intense” which Fitch says it expects to be challenging and to drive ‘cash burn’.
The firm says that as a standalone entity VinHomes would receive a ‘BB’ rating.
See also: Real Estate Industry in Vietnam