[Hanoi, 12 April 2023] FiinRatings’ affirmation of F88’s credit rating at BBB- is based on the Company’s on-track business growth, more diversified income streams, and significantly improving funding profile during the current challenging economic conditions.

However, we revise the rating outlook of F88 to be Negative, which reflects our expectation of a possible deterioration in the Company's asset quality and earnings in the near future, due to the impact of recent inspections and investigations by regulatory authorities aimed at strengthening the alternative lending market in Vietnam in which F88 is the leader. We assess that this is a risk factor for the alternative lending industry in general (including the consumer finance segment as well as the alternative lending segment), and has been taken into account in our assessment of the company's business position.

FiinRatings will closely monitor and consider the factors that we believe can have a significant impact on the company’s business and financial position, including:

• Asset quality and recovery ratio in light of tightening regulations on debt collection activities
• The ability to diversify income sources to lower the dependence on lending activities, especially the selling of standalone insurance policies.
• The ability to effectively manage costs of services and other expenses at the store level and reduce the break-even time of a new store.

Details of the rating announcement are HERE.

About FiinRatings

FiinRatings Joint Stock Company, a member of FiinGroup and a technical collaboration partner with S&P Global Ratings, is a local licensed Credit Rating Agency in Vietnam. FiinRatings provides credit ratings and related services to issuers, creditors and investors in Vietnam credit market. FiinRatings is also Vietnam first green bonds approved verifier, in accordance with the green bond international standard by the Climate Bonds Initiative. For more information, please visit https://www.fiinratings.vn