Fitch Ratings affirmed Petrovietnam Refining and Petrochemical's (HOSE:BSR) long-term issuer default rating at BB+, with a stable outlook.
Fitch said the company's standalone credit profile of bb- reflects its strong market position and robust financial profile, partly offset by the small scale and below-average complexity of its Dung Quat refinery.
The agency expects the company's refinery upgrade and expansion to raise capacity by 15% to 171,000 barrels per day.
Fitch expects Petrovietnam Refining and Petrochemical to remain in a net cash position over the next two to three years despite rising capex during construction.
The rating could be downgraded if PVN's rating falls or its incentives to support BSR weaken, while an upgrade would depend on a higher PVN rating with support incentives intact.
