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VN companies earn higher credit ranking   2008-09-17 - Viet Nam News

A total of 117 of 293 listed companies in Vietnam scored the highest possible ranking for creditworthiness last year, by the Credit Information Centre and leading global credit-rating corporation Dun&Bradstreet.

170 stock-market companies were classified as having a "good creditworthiness level "somewhere between triple "A" and triple "B."

The findings were released in a report yesterday, marking an increase of 23.16 per cent over 2006.

This means that as predicted two weeks ago, 40 per cent (39.93 per cent to be exact) of listed Vietnamese companies are rated at the highest level.

And about 80 of the 117 highest-rated firms were from HCM City Stock Exchange.

In addition, 170 stock-market companies were classified as having a "good creditworthiness level "somewhere between triple "A" and triple "B." The remainder scored average levels.

"We aim to provide investors with adequate information on listed firms through the ratings, although they are not perfect," said Dao Quang Thong, Deputy Director of CIC.

"Our local stock exchanges are based on the transparency of information, which plays an important part in helping investors with securities investment," said Cao Sy Kiem, chairman of Viet Nam Association of Small&Medium sized Enterprises.

And Kiem said traders were thirsty for information, especially from reliable sources. "Thus, (through the report) market transparency will be raised," he said.

According to the book, big-scale enterprises were much more effective at using credit than middle and small-scale companies.

"The ratings will be a basis for listed firms to review their businesses in a year, helping them promote their ability in administration and finance," said the chairman of the State Securities Commission, Vu Bang.

Bang also suggested CIC quickly complete a standard system to rate listed firms so that investors would have more accurate information with which to deal.

Stock guide

CIC, in partnership with D&B, began ranking listed firms in Vietnamese stock markets in 2007. It has also introduced a guide to assess companies listed on Vietnamese stock markets.

The centre evaluates company credibility based largely on State-audited financial reports, banking loans and non-financial services. It then assigns a grade ranging from triple "A" to the lowest rating, "C".

During the launch, the centre held awarded the top 20 listed firms with distinguished ratings of creditworthiness.

These enterprises included Asia Commercial Bank, the Corporation for Financing and Promoting Technology, Saigon Securities Incorporation and Vincom.

"This award appears to be recognition for our attempt at doing business in a transparent fashion, as we said we would the outset," said Vincom's general director Mai Huong Noi.

She said the award encouraged the firm to try harder to give investors accurate and reliable information about its business.

Nguyen Bang Tam, vice-chairman of the Listed Enterprises Club, said his organisation would use the ratings to support enterprises on the average level.

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