FiinRatings Assigns Initial “A-” Rating with a “Stable” Rating Outlook to VCP Power And Construction JSC

On December 15, 2025, FiinRatings - a strategic partner of S&P Global - assigned a first-time Long-term Credit Rating of“A-” to VCP Power And Construction Joint Stock Company (VCP), with a ‘Stable’ Rating Outlook.

The rating is based on FiinRatings’ assessment of VCP’s “Good” business performance and “Moderate” financial risk profile, reflecting the Company’s ownership of and ability to efficiently operate a variety of hydropower plants across Vietnam, as well as its integrated value-chain business model in the energy and waste treatment sectors. Over the next five years, the Company plans to expand its installed generation capacity to 400 MW. As a result, VCP’s leverage utilization is expected not to decline significantly but to remain at an appropriate level, supported by monitoring policies throughout the investment process.

FiinRatings assesses VCP’s business performance as “Good”, driven by a portfolio of hydropower plants that operate efficiently with relatively low capital intensity, along with diversification of geographic and project-type, which helps mitigate operational risks and optimize cost efficiency. The Company’s operating performance and profitability are assessed to be above the energy industry average and have shown recent improvement, supported by effective control over operation and maintenance (O&M) expenses and a slight downward trend in interest expenses.

VCP’s financial risk profile is assessed as “Moderate”, reflecting the Company’s increased leverage to support its installed capacity expansion strategy. Over the past five years, VCP’s debt-to-equity ratio has ranged between 1.0x and 1.8x, peaking in 2020 and 2023 as the Company increased borrowings to finance the investment in and acquisition of hydropower and waste treatment projects. In the near term, VCP is expected to maintain an elevated level of leverage to support the development of the Dak Lo 1–3 and Nam Khoa hydropower projects.

FiinRatings assessed VCP’s capital structure as “Appropriate”, reflecting an extended average debt tenure aligned with the capacity to generate cash flows of individual projects. The Company’s liquidity position over the next 12 months is also “Appropriate”, reflecting VCP’s abilities to meet financial obligations, supported by stable cash flows from the hydropower segment and long-term, high-value contracts in the waste treatment segment.

Disclaimer: 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 not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security.

👇 Read VCP’s detailed initial Credit Rating Report below: