Hanoi, 28 August 2023, FiinRatings is pleased to announce that it has assigned a first-time Long-term Issuer Credit Rating of “A” for Ha Do Group Joint Stock Company (“HDG” or “the Company”) with a “Stable” rating outlook. 

FiinRatings’ opinion of an “A” credit rating and “Stable” rating outlook for Ha Do Group JSC reflects our assessment of the Company’s “Strong” business risk profile and “Modest” financial risk profile.

The “Stable” credit rating outlook reflects FiinRatings’ perspective on HDG’s capacity to maintain the current credit rating over the next 24 months. In addition to HDG’s revenue contribution from its electricity generation segment is expected to support the stability of the Company’s cash flow, the projected sales of the remaining portion of the Ha Do Charm Villas project are also anticipated to significantly supplement HDG’s revenue during the 2023-2024 period. Furthermore, the Company is currently evaluating the planning and regulatory adjustments for its upcoming real estate and wind power projects prior to taking any additional implementation steps. As a result, we anticipate HDG to continue applying prudent financial policies to uphold a comparable leverage profile to the current one. 

Upgrade Scenario:  

• HDG expands its operating activities to an additional low volatility segment, which possesses a low degree of correlation with the Company’s current energy and real estate segments (in which the contribution of each operating activity accounts for a minimum of 10% of HDG’s annual EBITDA). With “the third leg of the stool”, the Company’s cash inflow diversification and operational stability would be substantially enhanced.  

Downgrade Scenario:  

• HDG’s ongoing legal entanglements with real estate projects continue to extend, incurring significant costs without generating commensurate revenue.  

• The review conducted by EVN and the Ministry of Industry and Trade unfavorably affects HDG's SP Infra 1 project, evidenced by higher compensation payments to EVN and lower future electricity prices than projected.  

• HDG exhibits an elevated risk appetite, evident in a noteworthy increase in financial leverage compared to its ability to generate cash flow from operations. Consequently, the debt-to-equity and debt-to-EBITDA ratios move towards industry averages. 

Read the full rating announcement HERE 

Notice: 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. 

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. 

Contact us 

Tel: (84-24) 3562 6962 

Email: support.fiinratings@fiingroup.vn