Credit Rating Result
Hanoi, 16 June 2026 - Vietnam Investors Service and Credit Rating Agency Joint Stock Company (VIS Rating) has assigned a bond rating of A to Greenland Pho Hoa Company Limited’s (short name: GPH) proposed VND 354 billion 3-year bonds guaranteed by Orient Commercial Joint Stock Bank (OCB, unrated).
The bond rating is based on our review of the draft bond offering prospectus, terms and conditions of the bond, guarantee letter, and other relevant documents. GPH intends to use the bond proceeds to develop a new residential project in Bac Ly commune, Bac Ninh province.
At the same time, VIS Rating has also assigned an issuer rating of BB- to GPH. The outlook for the ratings is 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in this announcement is effective from the date of the announcement and remains in effect unless and until it is superseded by a subsequent rating action.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 | |
|---|---|---|---|---|---|---|---|---|
| Stand-alone Assessment | ▲ | |||||||
| Scale | ▲ | |||||||
| Business Profile | ▲ | |||||||
| Profitability & Efficiency | ▲ | |||||||
| Leverage & Coverage | ▲ |
| Other consideration | Negative | Stable | Positive |
|---|---|---|---|
| Liquidity | ▲ |
| Low | Moderate | High | Very High | Extremely High | |
|---|---|---|---|---|---|
| Affiliate support | ▲ | ||||
| Government support | ▲ |
Rating rationale
GPH’s BB- issuer rating reflects its ‘Below-Average’ business profile, profitability and efficiency, and leverage and coverage, and ‘Very-Weak’ scale.
Established in 2022, GPH is a single-asset project company owned equally by GL Group Joint Stock Company and BGC Thanh Cong Investment Co., Ltd., to develop the 9.66-hectare Bac Ly residential project in Xuan Cam commune, Bac Ninh province (formerly Hiep Hoa district, Bac Giang province).
The project comprises 296 residential land plots for terraced houses and villas, supported by integrated infrastructure and public amenities. It is strategically located near the new administrative center of Xuan Cam commune, within an area hosting multiple industrial zones and clusters, and benefits from convenient interprovincial connectivity via Provincial Road 295 and proximity to Hanoi Ring Road 4. These advantages, together with a product mix aligned with local demand and limited competing supply, support strong sales absorption upon launch, expected in 2027.
GPH’s ‘Below-Average’ business profile reflects the ‘Average’ industry profile of the residential real estate sector, combined with the company’s ‘Weak’ competitive position and limited diversification. While the sector benefits from high entry barriers and structurally resilient demand, it remains highly regulated, capital-intensive, and moderately cyclical.
GPH’s competitive position is constrained by its single-asset project structure with minimal diversification, the absence of an operating track record, and its exposure to project execution and market risks.
GPH’s modest operating scale is reflected by its total revenue from the Bac Ly project estimated at around VND 700 billion over 2027–2028. Activities in 2026 are primarily preparatory, including final land clearance (98% complete as of 22 May 2026), payment of land use fees, and infrastructure development.
Profitability and efficiency are assessed as ‘Below-Average’, with projected Earnings before Interest, Tax and Depreciation (EBITDA) margins of around 25% during 2027-2028, driven by expected project sales at prevailing market price levels. Beyond its single project asset, the company has no plans to sustain profits beyond 2028.
We assess GPH’s leverage and coverage as ‘Below-Average’, reflecting a projected increase in debt to VND 354 billion in 2026 to fund project development, while revenue generation is deferred until 2027. Leverage, as measured by Debt/EBITDA, will peak during the construction phase, then improve as sales proceeds are realized in 2027–2028.
Coverage metrics will be weak in 2026, with negative Cash flow from Operations (CFO) due to front-loaded development spending, before CFO/Debt recovers to 60-80% in 2027 and 2028, as operating cash inflows strengthen following project launch. Interest coverage (Earnings before Interest and Tax (EBIT)/Interest) is supported by interest capitalization during construction and is projected to average around 2.1x in 2027–2028.
We view GPH’s liquidity as manageable over the next 12–18 months, supported by the absence of near-term debt maturities and sufficient equity funding and planned bond issuance to cover land payments and infrastructure works. The company increased its charter capital to VND 120 billion as of 5M2026, and plans to issue VND 354 billion of bonds to fund remaining development costs and support project readiness for launch.
We do not incorporate any affiliate or government support in GPH's issuer rating.
The outlook on GPH's issuer rating is stable, reflecting our view that its credit fundamentals will remain broadly stable over the next 12-18 months.
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 June 2026 | Long-term issuer credit rating | BB- | Stable | First-time assignment |
Regulatory disclosures
For further specification of VIS Rating's Rating Symbols and Definitions, please see: here
GPH’s ownership stake in VIS Rating: 0%
The ownership ratio of GPH 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.
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Analyst & Committee
Primary Analysts
Rating Committee Members
Credit Rating Announcement Number
Public credit rating announcement no: VN2400934223-001-160626
Disclaimer
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