SIBA Group’s A- issuer rating and bond rating could be upgraded if the company demonstrates a track record of materially higher profitability from mechanical engineering and the new businesses, driving stronger leverage and coverage metrics. Factors that could lead to an upgrade include, for example, EBITDA margin sustained above 26% and EBIT/Interest expense above 4.9x, or CFO/Debt above 40%.
Factors that could lead to a downgrade
SIBA Group’s A- issuer rating and bond rating could be downgraded if the company shows (1) significantly weaker-than-expected profitability and/or (2) aggressive debt-funded expansion into new ventures, materially weakening its credit metrics. Factors that could lead to a downgrade include, for example, EBITDA margin below 15%, Debt/EBITDA above 5.7x, or CFO/debt below 7%.
Rating methodology
Non-Financial Corporates Rating Methodology.
For more detailed information, please refer to our full credit rating methodology at: here
Analyst & Committee
Credit Rating Announcement Number
Vietnam Investors Service and Credit Rating Agency Joint Stock Company
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