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How to get rated

VIS Rating's credit rating activities are built on a methodological framework that adheres to rigorous standards and employs a forward-looking analytical approach

What is a Credit Rating?

VIS Rating's rating system is developed and tailored to address the needs of the fast-growing emerging debt market in Vietnam.

Our rating approach incorporates learnings and developments in global capital markets, and addresses market needs for clarity around the components of credit risk and finer distinctions in rating classifications.

Ranking of issuers by likelihood of default and loss given default
Opinion on credit risk and not of other critical investment criteria
Comparable within and across industries
Targeting rating accuracy and stability

Rating scale

Long-Term Rating

Opinion of the relative creditworthiness of issuers or debt instruments with an original maturity of one year or more within Vietnam.
  • AAA
    Issuers or debt instruments rated AAA demonstrate the strongest creditworthiness relative to other domestic entities and transactions
  • AA+
    Issuers or debt instruments rated AA demonstrate very strong creditworthiness relative to other domestic entities and transactions
  • AA
    Issuers or debt instruments rated AA demonstrate very strong creditworthiness relative to other domestic entities and transactions
  • AA-
    Issuers or debt instruments rated AA demonstrate very strong creditworthiness relative to other domestic entities and transactions
  • A+
    Issuers or debt instruments rated A demonstrate above-average creditworthiness relative to other domestic entities and transactions
  • A
    Issuers or debt instruments rated A demonstrate above-average creditworthiness relative to other domestic entities and transactions
  • A-
    Issuers or debt instruments rated A demonstrate above-average creditworthiness relative to other domestic entities and transactions
  • BBB+
    Issuers or debt instruments rated BBB demonstrate average creditworthiness relative to other domestic entities and transactions
  • BBB
    Issuers or debt instruments rated BBB demonstrate average creditworthiness relative to other domestic entities and transactions
  • BBB-
    Issuers or debt instruments rated BBB demonstrate average creditworthiness relative to other domestic entities and transactions
  • BB+
    Issuers or debt instruments rated BB demonstrate below-average creditworthiness relative to other domestic entities and transactions
  • BB
    Issuers or debt instruments rated BB demonstrate below-average creditworthiness relative to other domestic entities and transactions
  • BB-
    Issuers or debt instruments rated BB demonstrate below-average creditworthiness relative to other domestic entities and transactions
  • B+
    Issuers or debt instruments rated B demonstrate weak creditworthiness relative to other domestic entities and transactions and may be approaching default, with strong recovery prospects
  • B
    Issuers or debt instruments rated B demonstrate weak creditworthiness relative to other domestic entities and transactions and may be approaching default, with strong recovery prospects
  • B-
    Issuers or debt instruments rated B demonstrate weak creditworthiness relative to other domestic entities and transactions and may be approaching default, with strong recovery prospects
  • CCC+
    Issuers or debt instruments rated CCC demonstrate very weak creditworthiness relative to other domestic entities and transactions and are likely in or near default, typically with moderate recovery prospects
  • CCC
    Issuers or debt instruments rated CCC demonstrate very weak creditworthiness relative to other domestic entities and transactions and are likely in or near default, typically with moderate recovery prospects
  • CCC-
    Issuers or debt instruments rated CCC demonstrate very weak creditworthiness relative to other domestic entities and transactions and are likely in or near default, typically with moderate recovery prospects
  • CC
    Issuers or debt instruments rated CC demonstrate extremely weak creditworthiness relative to other domestic entities and transactions and are typically in default, typically with poor recovery prospects
  • C
    Issuers or debt instruments rated C demonstrate the weakest creditworthiness relative to other domestic entities and transactions and are typically in default, with very poor recovery prospects
Note: VIS Rating appends the modifiers + and - to each generic rating classification from AA through CCC. The modifier + indicates that the obligation ranks in the higher end of its generic rating category; no modifier indicates a mid-range ranking; and the modifier - indicates a ranking in the lower end of that generic rating category.

Short-Term Rating

Opinion of the ability of issuers in Vietnam, relative to other domestic issuers, to repay their debt obligations that have an original maturity not exceeding 13 months.
  • A-1
    Issuers rated A-1 have the strongest ability to repay short-term senior unsecured debt obligations relative to other domestic entities and transactions
  • A-2
    Issuers rated A-2 have an above-average ability to repay short-term senior unsecured debt obligations relative to other domestic entities and transactions
  • B-1
    Issuers rated B-1 have an average ability to repay short-term senior unsecured debt obligations relative to other domestic entities and transactions
  • B-2
    Issuers rated B-2 have a weak ability to repay short-term senior unsecured debt obligations relative to other domestic entities and transactions
  • C-1
    Issuers rated C-1 have the weakest ability to repay short-term senior unsecured debt obligations relative to other domestic entities and transactions
For more details, refer to our Rating Symbols and Definitions

Methodologies

Credit rating methodologies form the basis of credit analysis and opinions. Our rating approach incorporates learnings and developments in global capital markets, and addresses market needs for clarity around the components of credit risk and finer distinctions in rating classifications.

Non-Financial Corporates Rating Methodology

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Financial Institutions Rating Methodology

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How To Get Rated

  1. Issuer decides to issue a debt instrument
  2. Preliminary discussion between Issuer and VIS Rating
  3. Rating service contract to be signed
  4. Schedule a meeting between Issuer’s management team and VIS Rating’s analysis team
  5. Submit advance background materials
  6. Rating meeting with analysts: presentation, questions, and answers
  7. Preliminary Feedback
  8. Rating committee meeting
  9. Issuer is informed of rating result. Prepare for public announcement
  10. Surveillance and dialogue are maintained with customer for timely and relevant rating
Phase 1: Issuer prepares background materials and presentation
Phase 2: The analysis team works (4-8 weeks)
Phase 3: Ongoing monitoring
Analytical team is assigned

Business Development team finalizes the execution of rating engagement with the Issuer.

Analytical Team is assigned to the rating engagement and contacts the Issuer to introduce the team and address questions on credit rating methodology and approach.

 

Issuer shares company information with Analytical Team

Analytical Team and Issuer discuss information requirements for rating engagement.

Issuer prepares and shares the company’s information with Analytical Team.

Management meeting with Analytical Team

Issuer’s management team meets with the Analytical Team to present the company information and discuss the materials.

Analytical Team commences analysis and goes to Credit Rating Committee

Analytical Team commences analysis and convenes Credit Rating Committee to assign credit ratings to the Issuer.

The Credit Rating Committee is a key part of VIS Rating’s analytical process and helps to ensure the integrity and consistency of ratings. It reviews, votes and assigns the rating. After the Credit Rating Committee’s meeting, a post-committee call is held with the Issuer to notify and explain the ratings prior to public release.

Ratings and rationale delivered

Analytical Team delivers the assigned ratings and the ratings rationale to the Issuer through a rating announcement.

The Issuer reviews the drafted rating announcement. The ratings are released and made available on VIS Rating website.

Ongoing monitoring

After the rating announcement is released, the Analytical Team maintains constant dialogues with Issuer’s management team and surveillance of the Issuer.

Regular meetings between Issuer’s management team and the Analytical Team; information updates are required to ensure credit ratings assigned to the Issuer remain timely and relevant.

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