In this credit rating methodology[1], we explain our general approach to assessing credit risk for non-financial corporates in Vietnam and to assigning issuer ratings and debt instrument-level ratings[2]. Our definition of non-financial corporates encompasses a broad range of non-financial industry sectors including construction, manufacturing, metals and mining, real estate developers, regulated utilities, and transportation among others.
We discuss the qualitative and quantitative factors that are likely to affect rating outcomes in these sectors. We also discuss other considerations, which are factors for which the credit importance may vary widely among the companies in these sectors or may be important only under certain circumstances or for a subset of companies. We also discuss our approach to assessing the potential for affiliate support and the potential for government support. Since credit ratings are forward-looking, we often incorporate directional views of risks and mitigants in a qualitative way.
Our presentation of this credit rating methodology proceeds with (i) a discussion of the standard rating factors; (ii) other considerations; (iii) assessing support; (iv) assigning issuer and debt instrument-level ratings; and (v) general limitations.
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