Fitch Ratings affirms Northern Power Corporation at ‘BB+’ with stable outlook
Vietnam Electricity (EVN)’s Northern Power Corporation (EVNNPC) has retained its long-term foreign-currency issuer default rating at “BB+” with a Stable Outlook, according to Fitch Ratings.
The rating reflects EVNNPC’s standalone credit profile of ‘BB+’, which is on par with both parent company EVN and Vietnam’s sovereign rating of ‘BB+/Stable’. Fitch said the alignment of EVNNPC’s rating with EVN’s reflects the state-owned parent’s full ownership and the high likelihood of government support, consistent with Fitch’s Parent and Subsidiary Linkage Rating Criteria.
According to the agency, Vietnam’s electricity demand is expected to grow by 4.5% in 2025 and around 7% in the medium term, driven by strong industrial activity and economic expansion. EVNNPC is well-positioned to benefit from this growth thanks to its broad and diverse customer base, high collection rates, and low counterparty risk.
The agency also noted that EVNNPC is set to maintain robust capital expenditure (capex) in the coming years to upgrade power grids, build substations, and expand transmission lines to accommodate rising demand and integrate more renewable energy sources in line with Vietnam’s Power Development Plan VIII. Despite significant investments, the company’s financial leverage remains moderate, with net debt-to-EBITDA projected to range between 1.4x and 3.4x during 2025–2028.
An EVNNPC representative said the reaffirmation by Fitch demonstrates international confidence in the company’s financial strength, management capability, and strategic role within Vietnam’s power system. The company will continue to uphold financial discipline, enhance investment efficiency, and ensure a safe and reliable electricity supply for the northern region, the representative added.
Fitch’s latest rating underscores EVNNPC’s solid financial standing and strategic importance to Vietnam’s power sector, providing a favourable foundation for raising capital to modernise and expand the national grid, supporting the country’s green growth and energy transition objectives.
EVNNPC was first rated ‘BB/Stable’ in 2020. Fitch upgraded the rating to ‘BB/Positive’ in 2021 and 2022, before raising it to ‘BB+/Stable’ in 2023. The newly announced 2024 rating marks the second consecutive year Fitch has affirmed the company at ‘BB+/Stable.
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