In this credit rating methodology , we explain our general approach to assessing credit risk for infrastructure projects (projects) in Vietnam and to assigning issuer-level and debt instrument-level ratings .
We define infrastructure projects under this methodology as entities established with a limited business scope to own or operate a distinct asset or group of assets under a concession, project agreement, license, lease, or similar contractual arrangement. These projects generally have meaningful restrictions on new business activity, asset sales, and mergers and acquisitions. Projects rated using this methodology may be financed in various forms, ranging from an unsecured debt structure to a fully secured project finance debt structure. Where structural features that are more typical of a project finance transaction are present, we assess the level of risk reduction that these features provide to a project’s creditors and reflect it in our rating.
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