Fitch Ratings revised the outlook on Vietnamese property developer Vingroup Joint Stock Co. to negative from stable and removed all ratings from rating watch negative.

The rating agency also affirmed its long-term foreign and local currency issuer default ratings of the company at B+, and removed its B+ senior unsecured rating, citing the absence of any outstanding senior unsecured debt.

Fitch attributed the negative outlook to the company's increased business risk, stemming from the company's decision to fund its auto-manufacturing venture VinFast through the sale of its highly cash-generative property business. Other factors which add to the outlook include the company's lack of expertise and limited experience in the auto-manufacturing segment and the continued losses in its retail and hospitality segments.

The rating agency attributed the rating affirmation to the expectation that Vingroup's leverage will fall below 45% by 2020, and the expectation that its remaining property business will support its capital expenditures.