[Hanoi, Octorber 6^th 2023] FiinRatings is pleased to announce that it has assigned a first-time Long-term Issuer Credit Rating of “BBB-” to Tien Phong Securities Joint Stock Company (“TPS” or “the Company”) with the Outlook: Stable. FiinRatings’ opinion reflects our assessment of the Company’s moderately strategic role to one of Vietnam’s large commercial banks, TPBank.

FiinRatings’s “Stable” rating outlook on TPS reflects our expectations that the Company will continue to benefit from its moderately strategic role to TPBank’s ecosystem in the medium term. Furthermore, the Company is expected to maintain its market presence as one of the leading corporate bonds IB & Advisory securities companies in Vietnam. TPS’s funding ability will also continue to play an important role in helping stabilize the Company’s liquidity position.

Upgrade Scenarios

• Significant improvement in the brokerage market share after expanding its business, while maintaining its leading position in IB & Advisory segment.
• Stable revenue-generating ability and cost management leading to lower earnings volatility and more predictable earnings.
• Considerably improving risk position in both investment, margin lending and other revenue-generating activities.
• The Company significantly increases owner's equity while improving efficiency of capital use and allocating capital toward activities with appropriate risk appetite.

Downgrade Scenarios

• A significantly deteriorated business profile as evidenced by a declining securities brokerage market share, shrinking customer base, and losing competitive advantage in IB & Advisory segment.
• Continuously increasing leverage level, weaker-than-expected earnings metrics coupled with high volatility in earnings and lower earnings quality, which then affect TPS’s ability to fulfil the Company’s financial obligations.
• Worsening risk position in investment, margin lending, investment banking and other revenue-generating activities.
• Downward change in FiinRatings’ view of the credit profile of TPS’s business partners, or there is any significant change beyond FiinRatings' expectations regarding TPBank's plan to provide support that could provoke negative impact on TPS.

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.

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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. 

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