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CIC releases credit ratings of listing companies
The Credit Information Centre (CIC) under the State Bank of Vietnam in early October released a book showing the rankings of listing companies.
CIC is now the only organisation in Vietnam that provides analysis of and assigns credit ratings to enterprises. Some 19,000 enterprises have been given a credit rating by CIC, which uses analysis methods recognised by international institutions, including the World Bank (WB), Asian Development Bank (ADB) and International Monetary Bank (IMF).
198 out of 202 companies now listing at the HCM City Stock Exchange (HOSE) and Hanoi Securities Trading Centre (HASTC) were given credit ratings (not including banks and investment fund certificates).
The 198 companies were ranked from AAA to CCC (AAA for the best). 74 companies among the 198 ranked ‘AAA’ (37.37%), while 89 companies ranked from AA to BB (44.95%), and 35 companies from BB to CCC (17.68%).
According to Dao Quang Thong, Deputy Director of CIC, the credit rating results truly reflect the scale of the two trading floors in Hanoi and HCM City. It shows that the companies listing at HOSE have bigger business scale and better capability than the companies listing at HASTC.
At HOSE, 55 companies rank AAA (49.55% of the total 111 ranked companies at the trading floor), while only 19 companies at HASTC rank AAA (21.84% of 87 ranked companies).
According to CIC, listing companies mostly operate in material production industries (46). Consumer production also sees many companies listing on the bourse (45). The pharmaceutical industry sees the fewest listing companies (3).
However, consumer production has the most AAA companies (51% of 45 companies), while AA-BBB companies account for 42.22%. Material production ranks second in the number of AAA companies (43.5% of 56 enterprises), while AA-BBB companies account for 34.78%. The construction sector and real estate only has 13% of 31 companies ranked AAA, while the companies ranked from AA to BB account for 48.39%.
Mr Thong said that most listing companies have ‘good health’ as no company was ranked CCC, which also shows the healthy performance of Vietnam’s stock market.
VnEconomy
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