Fitch upgrades Vietnam's EVNNPC credit profile to 'bb+'

Fitch Ratings has upgraded the standalone credit profile (SCP) of Electricity Vietnam Power Generation Company (EVNNPC) to 'bb+', recognizing the company's continued financial and operational progress. The rating elevation brings EVNNPC's standalone profile into alignment with that of its parent company, Electricity of Vietnam (EVN), signaling increased confidence in the subsidiary's independent creditworthiness.

The agency cited EVNNPC's sustained improvements in operational performance as a key factor in the upgrade decision. The company has demonstrated greater efficiency in power generation operations, contributing to stronger financial metrics and more stable cash flows across its portfolio.

Fitch also highlighted the effectiveness of Vietnam's reformed electricity tariff adjustment mechanism as a supportive factor for EVNNPC's credit profile. The more responsive tariff system has provided the company with improved capacity to recover costs and maintain financial stability amid changing market conditions, reducing revenue volatility.

The close institutional relationship between EVNNPC and its parent EVN further underpins the rating, with Fitch noting the subsidiary benefits from EVN's operational oversight and strategic direction. This structural linkage provides additional credit support for EVNNPC as it continues expanding its power generation portfolio.

The upgrade comes as Vietnam's state-owned power sector pursues major infrastructure projects, including liquefied natural gas power facilities and grid expansion initiatives, aimed at meeting growing electricity demand across the country.