FiinRatings Assigns Initial “A” Rating with a “Stable” Outlook to VPS

FiinRatings, a strategic partner of S&P Global Ratings, announced the first long-term Issuer Credit Rating for VPS Securities JSC (“VPS” or “the Company”) at “A” with a “Stable” outlook on 15 January 2025. 

FiinRatings, a strategic partner of S&P Global Ratings, announced the first long-term Issuer Credit Rating for VPS Securities JSC (“VPS” or “the Company”) at “A” with a “Stable” outlook on 15 January 2025. 

This credit rating result is based on FiinRatings' assessment of the overall outlook for the securities sector in Vietnam, VPS's business position, capital structure, profitability, risk position, and liquidity, among other factors, using FiinRatings' standard credit rating methodology and criteria. 

VPS is the sixth company in the securities services sector to be rated by FiinRatings. Previously, FiinRatings issued initial credit ratings for Petrovietnam Securities Incorporated (PSI), MB Securities JSC (MBS), Viet Dragon Securities Corporation (VDS), Tien Phong Securities Corporation (TPS), and Vietcap Securities (VCI). We are currently maintaining surveillance for rating updates on TPS, PSI, and VPS. 

Securities companies are actively raising capital both domestically and internationally from regional financial institutions, with some businesses recently participating in corporate bond issuance. In 2024 alone, securities companies issued VND 19.2 trillion in corporate bonds, accounting for 4.1% of the total VND 467 trillion in bonds issued for the entire year. In the first three months of the year, there were only two issuances totaling VND 5,300 billion, with VND 5,000 billion coming from VPS. 

Securities companies primarily issue corporate bonds with maturities ranging from 1 to 3 years, with an average interest rate of 7.95%, depending on their credit rating. Some bonds have had terms longer than 5 years and included significantly higher risk premiums. 

 

For further details: 

Credit Rating Report on VPS Securities Joint Stock Company: THIS LINK

Disclaimer: Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. FiinRatings’ opinions, analyses, and rating acknowledgment decisions are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. 

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