Step 1
Analytical team assignment
After the service agreement is signed, a team of analytical experts is assigned to conduct the credit rating.
Rating Methodology
Understanding Credit Ratings
Each VIS Rating credit rating opinion is underpinned by standards-based methodologies, rigorous analysis and a forward-looking perspective
What is a Credit Rating?
A credit rating is an independent opinion on the credit risk of a company or debt instrument, based on an assessment of its ability to meet debt obligations and the potential loss in the event of default
Independent Opinion
An objective assessment of the credit risk of a company or debt instrument
Debt-Servicing Capacity
Based on an evaluation of the ability to meet debt obligations and the potential loss in the event of default
Consistent Comparability
A rating scale enables consistent comparison of credit risk across companies and sectors
Stable and Forward-Looking
Reflects the credit outlook of a company or debt instrument over the next 12–18 months
Who Uses
Credit Rating Results?
Credit ratings provide an independent view of credit risk, helping different market participants make more informed decisions on capital raising, investment, credit approval, partnership assessment, and market supervision
Businesses
Enhance transparency, strengthen credibility with investors and partners, and support access to more suitable funding sources
Investors
Use ratings as an input for credit risk assessment, comparison across issuers, and investment decision-making
Banks & Financial Institutions
Support credit appraisal, credit limit setting, portfolio management, and counterparty risk monitoring
Business Partners
Use ratings as a reference when assessing the financial strength and reliability of customers, suppliers, or strategic partner
Regulators and Market Participants
Monitor rating results as a source of reference information to support market transparency and discipline
Credit rating process
The time required to complete a credit rating depends on many factors including the availability of information, meetings with management and complexity of the assignment. Typically, an initial rating takes 4–6 weeks.
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 2
Information and document submission
The company provides the necessary information and documents to the analytical team for the rating analysis.
Step 3
Management meeting with the analytical team
The company’s management meets with the analytical team to exchange information and discuss the submitted documents.
Step 4
Analytical review and submission to the Rating Committee
The analytical team conducts the credit analysis, and a Rating Committee is formed to determine the company’s credit rating.
The Rating Committee is a key part of VIS Rating’s rating process, helping ensure the integrity and consistency of credit rating decisions.
The Rating Committee reviews, votes on, and determines the credit rating. After the Rating Committee meeting, the company is informed of the rating outcome and provided with an explanation before the rating is publicly disclosed.
Step 5
Rating report, analysis and public disclosure
The analytical team informs the company of the rating outcome and rating rationale through the Credit Rating Report.
The company reviews the draft Credit Rating Report. The credit rating is then issued and publicly disclosed on VIS Rating’s website.
Step 6
Ongoing surveillance and updates
After the Credit Rating Report is published, the analytical team maintains regular communication with the company’s management and continuously monitors the company’s performance.
Regular meetings between the company’s management and the analytical team, together with timely information updates, are required to ensure that the company’s credit rating remains timely and appropriate.
Rating scale
The credit rating system of VIS Rating is developed and specifically designed to meet the diverse and evolving needs of Vietnam’s capital market.
Long-Term Rating
Opinion of the relative creditworthiness of issuers or debt instruments with an original maturity of one year or more within Vietnam.
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AAA
Issuers or debt instruments rated AAA demonstrate the strongest creditworthiness relative to other domestic entities and transactions
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AA
Issuers or debt instruments rated AA demonstrate very strong creditworthiness relative to other domestic entities and transactions
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A
Issuers or debt instruments rated A demonstrate above-average creditworthiness relative to other domestic entities and transactions
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BBB
Issuers or debt instruments rated BBB demonstrate average creditworthiness relative to other domestic entities and transactions
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BB
Issuers or debt instruments rated BB demonstrate below-average creditworthiness relative to other domestic entities and transactions
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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
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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
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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
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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 adds + and - signs to each general rating category from AA to CCC. The + sign indicates that the rated entity is at the higher end of the general rating category; no sign applies to ratings in the middle position; the - sign indicates a rating at the lower end of that general 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.
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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
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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
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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
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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
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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
VIS Rating’s methodologies are built on globally recognized rating methodologies, refined through more than 115 years of Moody’s Ratings’ experience, and adapted to reflect the characteristics of Vietnam’s market
