Credit Rating Result
Hanoi, 09 October 2026 - Vietnam Investors Service and Credit Rating Agency Joint Stock Company (VIS Rating) has assigned a BBB- rating to Century Land Joint Stock Company’s (short name: CRE) proposed three-year VND620 billion senior secured bonds. The rating outlook is stable.
The bond rating is based on our review of the draft terms and conditions of the bond issuance and other relevant documents. CRE intends to use the proceeds to refinance existing debt obligations.
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in this announcement is effective from the date of the announcement and remains in effect unless and until it is superseded by a subsequent rating action.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
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| Other consideration | Negative | Neutral | Positive |
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Rating rationale
The BBB- senior secured bond rating is underpinned by CRE’s ‘Average’ standalone assessment and BBB- long-term issuer rating.
The senior secured bonds constitute direct, senior and secured obligations of CRE, and will rank pari passu with the company’s other senior secured obligations. The senior secured bond rating is aligned with CRE’s BBB- issuer rating, as the bond will represent the preponderance of secured debt in CRE’s capital structure upon issuance.
Proceeds from the proposed three-year VND 620 billion senior secured bonds (bond code: CREL12601) will be used to repay existing short-term debt obligations, including VND 600 billion in borrowings from Binh Minh Housing Development Joint Stock Company and VND 20 billion in bank borrowings from Military Commercial Joint Stock Bank – Dong Da Branch. CRE intends to issue the bond in October 2026.
According to management, CRE intends to meet its bond obligations through collections of receivables and proceeds from brokerage activities and real estate investment and development projects, including cash flows from the Khe Cat and Louis City Hoang Mai projects, as well as other operating cash flows and refinancing sources.
The bonds will be secured by (1) 29.1 million shares in Thanh Dat VN Investment Joint Stock Company, equivalent to 58.2% of its charter capital and owned by CRE; and (2) 717,103 shares in Nhat Hang Investment Construction and Trading Joint Stock Company, equivalent to 73.17% of its charter capital and owned by Ms. Dinh Thuy Duong, together with all related rights and benefits. CRE has committed to replace or supplement the pledged shares with real estate assets from the Khe Cat and Paradise Dai Lai projects within three months from the date on which applicable laws permit commercial banks to manage collateral securing corporate bonds.
CRE is required to maintain collateral coverage of at least 180% of outstanding bond principal throughout the tenor and to add eligible collateral if the ratio falls below this threshold.
We note that recoveries from collateral liquidation in the event of default depend on the market valuation of the pledged shares, which may be affected by investor sentiment, protracted negotiations, and legal delays.
In addition to collateral, the bonds are guaranteed by CRE’s related parties and organizations for the full payment of all bond-related obligations. These guarantees are legally enforceable, irrevocable, and unconditional. However, we assess these guarantees as providing limited credit enhancement for bondholders because the guarantors have limited financial resources.
In addition, CRE is required to maintain certain financial metric covenants throughout the tenor of the bonds beginning in the first half of 2027, including a debt-to-equity ratio of no more than 1.0x, a current assets-to-current liabilities ratio of at least 1.2x, and an accounts receivable-to-total assets ratio of no more than 65% (no more than 50% from end of 2027 onwards). As of 30 June 2026, we note CRE’s accounts receivable-to-total assets ratio exceeds 65%. Management says CRE plans to reduce receivables from related parties to restore compliance with the required threshold.
The company has appointed VNDIRECT Securities Corporation (VNDIRECT) to serve as the advisory service provider, bondholder representative, and collateral management agent. VNDIRECT is responsible for monitoring CRE’s compliance with the terms and conditions of the bonds, notifying bondholders of any breach of the bond terms and conditions, and coordinating bondholders in collateral liquidation.
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 | Bond code | Maturity | Outlook | Action |
|---|---|---|---|---|---|---|
| 09 October 2026 | Senior secured debt rating | BBB- | CREL12601 | 3 years | Stable | First-time assignment |
Regulatory disclosures
For further specification of VIS Rating's Rating Symbols and Definitions, please see: here
CRE’s ownership stake in VIS Rating: 0%
The ownership ratio of CRE 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.
Please see https://visrating.com for any updates on changes to the lead rating analyst and to the VIS Rating's legal entity that has issued the rating.
Please see the rating tab on the issuer/entity page on https://visrating.com for additional regulatory disclosures for each credit rating.
Analyst & Committee
Primary Analysts
Rating Committee Members
Credit Rating Announcement Number
Public credit rating announcement no: VN0101160306-002-091026
Disclaimer
VIS Rating’s credit ratings, assessments, other opinions, and publications are not intended for use by non-professional investors and it would be reckless and inappropriate for non-professional investors to use VIS Rating’s credit ratings, assessments, other opinions or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.