Definition of Events of Default

In addition to common default case definitions, FiinRatings determines other cases in which an Issuer is considered to be in default. This definition focuses on the credit records of the Issuer and is not affected by the size or number of loans, payables and other debt securities issued. The purpose of FiinRatings is to conduct research and monitor the default rate of rated Issuers by each rating score, ensure information disclosure requirements according to Decree 88/2014/ND-CP, and provide information to the market about the credit rating quality of FiinRatings.

FiinRatings considers a default to have occurred when:

• An Issuer fails to fulfill financial obligations arising from a financial instrument, FiinRatings recognizes default on the first instance of a missed payment related to that financial instrument; or
• An Issuer or one of its lenders (the creditor of loans and finance leases, bonds, or other interest-bearing debt instruments) files for the Issuer’s bankruptcy as a signal of the Issuer’s inability to fulfill financial obligations in a timely manner; or
• An Issuer conducts a distressed debt restructuring; or
• For financial instruments or facilities that do not have scheduled maturity or repayment dates, such as line of credit, FiinRatings recognizes the event as a default only if the facilities remain continuously overdrawn for more than thirty (30) days, without the express written consent of creditors.

Learn more about: FiinRating's Policy and Definition and Recognition of Defaults, please SEE HERE

List of events of defaults

H1.2020 H2.2020 H1.2021 H2.2021 H1.2022 H2.2022 H1.2023 H2.2023