Ministry grants licences to four credit rating firms

The headquarters of the Ministry of Finance. — Photo thoibaotaichinhvietnam.vn

HÀ NỘI — The Ministry of Finance (MoF) has granted certificates of eligibility for credit rating services in Việt Nam to four companies from January to August, after verifying that they meet all the necessary requirements.

The firms are Saigon Phát Thịnh Ratings JSC (Saigon Ratings), FiinRatings JSC (FiinRatings), Việt Nam Investors Service and Credit Ratings JSC (VIS Rating), and S&I Ratings JSC (S&I Ratings).

The certificates were issued based on the provisions in the Investment Law (2014, 2020) and Decree No. 88/2014/ND-CP, regulating credit rating services.

According to Decree No. 88/2014/ND-CP, enterprises providing credit rating services must obtain a certificate of eligibility for credit rating services from the MoF.

Enterprises that do not register to provide credit rating services are not permitted to use the term ‘credit rating’ or any other similar terminology in their company name.

Nguyễn Quốc Hùng, Vice Chairman and Secretary General of the Việt Nam Banks Association (VNBA), said that credit rating serves as an effective mechanism to promote transparency and public disclosure in financial market activities. 

This, in turn, helps drive the development of safer and more sustainable money and capital markets.

Banks with high credit ratings enjoy significant advantages, such as easier access to capital, more favourable lending terms, and lower borrowing costs from both domestic and international sources. 

Similarly, enterprises with strong credit ratings can quickly secure bank financing on preferential terms. They also benefit from better pricing and service conditions when transacting with partners domestically and globally. — VNS