Credit Rating Result
Hanoi, 16 September 2026 – Vietnam Investors Service and Credit Rating Agency Joint Stock Company (VIS Rating) has affirmed A&A Green Phoenix Group Joint Stock Company (Phenikaa) at A long-term issuer rating. The rating outlook remains stable.
The rating presented in this announcement is effective from the date of the announcement and remains in effect unless and until it is superseded by a subsequent rating action. Please visit https://visrating.com/rating-results to obtain the latest update on the rating.
SUMMARY OF KEY FACTORS
| Extremely Weak | Very Weak | Weak | Below- Average | Average | Above- Average | Strong | Very Strong | |
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| Leverage & Coverage | ▲ |
| Other consideration | Negative | Stable | Positive |
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| Liquidity | ▲ |
| Low | Moderate | High | Very High | Extremely High | |
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| Affiliate support | ▲ | ||||
| Government support | ▲ |
Rating rationale
The affirmation of Phenikaa’s A long-term issuer rating with a stable outlook reflects our expectation that growth in its education and residential real estate businesses will offset weaker quartz stone profitability in 2026-2027 and support more diversified earnings. We also expect the group to maintain good access to domestic bank funding to finance capital expenditures and manage liquidity through 2028.
Phenikaa remains Vietnam’s leading quartz stone producer, supported by vertical integration, product innovation and an established U.S. distribution network. However, quartz stone revenue fell by an average of 13% year-on-year during 2025-1H2026, mainly because exports to the U.S. declined after reciprocal tariffs were applied from Q3 2025.
We expect Phenikaa’s U.S. quartz stone revenue to remain pressured in 2026–2027 by tariff uncertainty and weak housing demand. Management plans to offset this through targeted discounts, market diversification, and tighter inventory control.
Phenikaa’s education segment grew strongly in 2025, with revenue up 67% to VND 1.1 trillion. We expect new facilities to lift enrollment to around 42,000 over the next 12–18 months and support average annual revenue of VND 1.6 trillion in 2026–2028. Residential real estate should also support Phenikaa’s profitability and cash flow over the next 12–18 months, with annual revenue of VND 1.2–1.3 trillion in 2026–2027 from Endless Skyline Westlake and Phenikaa Tower. The group has no residential pipeline beyond 2028.
Phenikaa’s healthcare business – which complements its education business by providing training and employment for its students - remains early-stage, despite revenue tripling to VND 315 billion in 1H2026 as its customer reach grew. Continued investment in hospitals and equipment will likely keep the segment loss-making over the next 2-3 years.
We assess Phenikaa’s EBITDA margin to ease to around 36% in 2026–2028 from 39% in 2025, as growth in education and residential real estate partly offsets weaker quartz stone earnings.
We assess Debt/EBITDA to rise to around 3.9x in 2026–2028 from 3.6x in 2025, driven by higher debt to fund capital spending on education, healthcare, hotel and pharmaceutical projects.
Higher leverage and rising rates will weaken EBIT/interest coverage to about 2.3x in 2026–2028 from 2.7x in 2025. However, stronger operating cash flow from inventory reduction and higher education and residential real estate inflows should support CFO/Debt at around 17%.
We assess Phenikaa’s liquidity as well managed over the next 12–18 months, supported by stable operating cash flow, sizable cash balances and access to bank credit lines. Even without new bank financing, we expect internal cash sources to cover all maturing debt.
We do not incorporate any affiliate support or government support in Phenikaa’s issuer rating.
Phenikaa is a multi-sectoral group of over 30 member companies. Its core quartz stone business has operated in Vietnam and export markets since 2004. Since 2018, the group has expanded into education, healthcare, and residential and mixed-use property, including Phenikaa University, Phenikaa School, and Phenikaa University Hospital.
Factors That Could Lead to an Upgrade/Downgrade
Rating methodology
Non-Financial Corporates Rating Methodology.
For more detailed information, please refer to our full credit rating methodology at: here
Credit rating history
| Date | Rating type | Rating | Outlook | Action |
|---|---|---|---|---|
| 16 September 2026 | Long-term issuer credit rating | A | Stable | Affirm |
| 16 September 2025 | Long-term issuer credit rating | A | Stable | Affirm |
| 16 September 2024 | Long-term issuer credit rating | A | Stable | First-time assignment |
Regulatory disclosures
For further specification of VIS Rating's Rating Symbols and Definitions, please see: here
Phenikaa’s ownership stake in VIS Rating: 0%
The ownership ratio of Phenikaa held by VIS Rating’s staff: 0%
Cases in which analysts and credit rating council members cease their participation in the credit rating contract before the contract expires and the reason for the cessation: 0
VIS Rating adheres to a stringent independence policy by current regulations governing the provision of credit rating services in Vietnam. This commitment extends to compliance with our conflicts-of-interest policy, aiming to uphold objectivity and independence when expressing opinions on credit ratings.
The rating has been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.
This rating is solicited.
Regulatory disclosures contained in this rating announcement apply to the credit rating and, if applicable, the related rating outlook or rating review.
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Analyst & Committee
Primary Analysts
Rating Committee Members
Credit Rating Announcement Number
Public credit rating announcement no: VN0104961939-003-160926
Disclaimer
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