...Niche player in highly competitive and global market. Outlook: Positive S&P Global Ratings' positive outlook on Haitong Bank S.A. reflects the possibility of an upgrade in the next 12 months if we anticipate a less risky operating environment for banks in Portugal. We could also raise the ratings on Haitong Bank if the bank successfully finalizes its business model turnaround and integration with its parent, increases its risk-adjusted capital (RAC) ratio sustainably above 7% while improving its asset quality and maintaining sound balance sheet growth. We would revise the outlook to stable if we see solvency and risk profile deterioration. Specifically, this could happen if Haitong Bank fails to reduce its stock of impaired assets and, in turn, its nonperforming loans (NPL) ratio from 41% as of June. 30, 2016, or seeks rapid balance sheet expansion and takes undue risks. A revision of the outlook to stable could also occur if Haitong Bank's business model turnaround and integration with...
