FiinRatings: Initial Rating Public Announcement Development Investment Construction J.S Corporation (“DIC Group”)

December 30, 2023

Hanoi, 30 December 2023,

FiinRatings has assigned a “BB+” credit rating and a “Stable” Rating Outlook to DIC Group, reflecting the company's “Satisfactory” business risk profile which has considered the asset scale and operating efficiency within the real estate industry. Additionally, FiinRatings considers the financial risk to be at a “Significant” level, with the liquidity position assessed as “less than adequate”.

The “Stable” outlook reflects FiinRatings' viewpoint on the credit rating of DIC Group maintaining over the next 12 months. The assignment reflects the Company's position, capability, and extensive industry experience in the industry, despite some common challenges for the real estate industry in the period from 2023 to 2024 as previously highlighted.

Upside Scenario:

The following factors may lead to a change in credit rating for DIC in the medium term:

  • Cash flow will exceed the expectations outlined in FiinRatings' base case forecast. This improvement might be attributed to key projects in the 2024-2025 period, including Dai Phuoc, Vi Thanh, and Nam Vinh Yen. Moreover, financial indicators and liquidity position demonstrate enhancement in comparison to the base case scenario. These positive changes result from the effective restructuring of existing bank loans and the extension of credit limits with financial institutions such as BIDV and VietinBank.
  • Dai Phuoc project will be handed over on schedule, qualified for sale-opening and exploitation, leading to significant cash flow in the 2024-2025 period. In 2024, the Company will properly and fully complete the obligations signed with customers thereby ensuring the recognition of revenue from this project.
  • The company successfully mobilized equity capital through the expected stock issuance plan in 2024-2025, reducing short-term financial pressure.

Downside Scenario:

Negative factors that can lead to credit rating downgrade:

  • Unfavorable market conditions create pressure for the company, either resulting in increased expenses or compelling the company to lower selling prices
  • Factors related to the interest rate or macroeconomic environment and unresolved legal problems might influence the company's capability to mobilize capital in line with the planned execution and deployment of projects.
  • The cash flow falls short of FiinRatings' base case scenario, leading to the persistence of high financial leverage or the company facing challenges in repaying or refinancing existing debt

Read the full rating announcement HERE

Notice: Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. FiinRatings’ opinions, analyses, and rating acknowledgment decisions are for reference and are not recommendations to purchase, hold, or sell any securities, and/or debt, or financial instruments or to make any investment decisions.

About FiinRatings

FiinRatings Joint Stock Company, a member of FiinGroup and a technical collaboration partner with S&P Global Ratings, is a local licensed Credit Rating Agency in Vietnam. FiinRatings provides credit ratings and related services to issuers, creditors, and investors in the Vietnam credit market. FiinRatings is also Vietnam’s first green bonds approved verifier, in accordance with the green bond international standard by the Climate Bonds Initiative. For more information, please visit

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