(The following statement was released by the rating agency)
Nov 22 -
-- Vinacomin’s financial risk profile is weakening due to the company’s large capital spending and the declining profitability of its coal operations.
-- We are lowering our long-term corporate credit rating on the Vietnam-based mining company to ‘B+’ from ‘BB-’ and the stand-alone credit profile to ‘b+’ from ‘bb-'.
-- We are also affirming our ‘axBB’ long-term ASEAN regional scale rating on Vinacomin.
-- The stable outlook reflects our expectation that Vinacomin’s financial risk profile will stabilize at weaker levels over the next two years.
On Nov. 22, 2012, Standard & Poor’s Ratings Services lowered its long-term corporate credit rating on Vietnam-based Vietnam National Coal and Mineral Industries Holding Corp. Ltd. (Vinacomin) to ‘B+’ from ‘BB-'. The outlook is stable. At the same time, we affirmed the ‘axBB’ long-term ASEAN regional scale rating on the company.