FiinRatings, a leading credit rating agency in Việt Nam, made the announcement just weeks after S&P Global Ratings – one of the world’s top independent credit rating organisations – announced to acquire a 43.6 per cent stake in the company this past February.
This marks FiinRatings’ eighth update on F88 since its initial credit rating report on October 12, 2021. The upgraded outlook is expected to help F88 attract more lenders and reduce its cost of funds, further supporting its expansion.
According to FiinRatings, the decision to improve F88’s outlook reflects notable progress in business operations, capital mobilisation, liquidity and risk control.
“We assess that F88’s funding capacity and liquidity have improved compared to the previous rating, thanks to its continued success in diversifying funding sources from both domestic and international partners. The company’s plan to increase charter capital in 2026, along with a significant reduction in its average cost of funds, further strengthens its financial foundation,” FiinRatings stated in its report.
The agency also highlighted that F88’s ability to secure diverse funding sources ensures stable liquidity and a strong financial foundation to support its growth.
FiinRatings emphasised F88’s dominant position in the alternative lending market, noting its aggressive expansion plan to reach 1,000 stores by 2026, as a key factor behind the rating upgrade.
In 2024, F88 recorded loan balance growth of 22.7 per cent, significantly outperforming the consumer finance industry average of 3.84 per cent. The company also made strides in revenue diversification, with insurance services revenue growing 11.8 per cent, contributing 9.5 per cent of total revenue.
Financially, F88 remains well-positioned compared to industry peers.
The company’s Debt-to-Equity (D/E) ratio remained at 1.7, notably lower than the consumer finance industry median of 4.6, showcasing a healthy balance between risk and capital efficiency.
A liquidity stress test, which simulated a 50 per cent drop in loan mobilisation and no charter capital increase in 2026, showed that F88 would still maintain stable liquidity and meet all financial obligations.
F88 reported a net profit of VND351.3 billion in 2024, alongside a sharp decline in Cost to Income Ratio (CIR). Key financial indicators, including Net Interest Margin (NIM), Return on Equity (ROE), and Return on Assets (ROA), have all improved beyond 2023 levels and currently exceed industry averages.
“We project that F88 will continue to achieve strong after-tax profits, ranging between VND500-700 billion in 2025-2026, driven by its lending expansion strategy and disciplined cost control,” FiinRatings said.
A major contributor to F88’s favourable rating is its enhanced risk management framework and effective debt collection strategies.
FiinRatings noted that F88 has strengthened its ability to manage bad debts, supported by notable improvement in customer repayment capacity, stricter credit policies, enhanced risk appetite controls and effective cross-functional coordination. The company’s debt collection rate also saw a strong recovery, reaching 41.7 per cent in 2024, compared to just 15.6 per cent in 2023.
“We expect F88 to further improve debt collection efficiency and reduce credit losses, while maintaining prudent policies on debt classification, provisioning, and bad debt resolution. If this trend continues, F88’s credit cost/average adjusted loan balance ratio could decline to 19 per cent by 2026,” the report added.
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About FiinRatings
FiinRatings is Việt Nam’s leading credit rating agency and a subsidiary of FiinGroup. Recognised by the Ministry of Finance, FiinRatings plays a crucial role in evaluating the financial health and creditworthiness of businesses, organisations and investment projects. Its ratings help investors, credit institutions, and the broader financial market assess risk, improve corporate transparency and attract capital.
About F88
F88 Business Joint Stock Company is the market leader in Vietnam’s alternative lending segment, focused on providing secured loans via vehicle titles, as well as insurance distribution and financial support services. As of December 2024, F88 had 868 stores across 63 provinces and cities and aims to expand to 1,000 locations by 2026.
