Haitong Securities Co. Ltd. 'BBB/A-2' Ratings Affirmed, SACP Raised To 'bbb' On Improved Capitalization; Outlook Stable

We expect China-based Haitong to maintain its strong retail brokerage franchise, market position in securities-related businesses, and earnings capacity over the next 12-24 months. A number of factors have affected Haitong's RAC ratio, and on balance we expect it to remain above 15%, consistent with a "very strong" capitalization and one notch up from "strong". We are therefore raising the SACP to 'bbb' from 'bbb-'. We are affirming our 'BBB' long-term and 'A-2' short-term issuer credit ratings on Haitong. At the same time, we are affirming the 'cnA' long-term and 'cnA-2' short-term Greater China regional scale ratings on the company. The stable outlook reflects our expectation that Haitong will maintain its business and financial profiles as well as its government-related

...+ We expect China-based Haitong to maintain its strong retail brokerage franchise, market position in securities-related businesses, and earnings capacity over the next 12-24 months. + A number of factors have affected Haitong's RAC ratio, and on balance we expect it to remain above 15%, consistent with a "very strong" capitalization and one notch up from "strong". We are therefore raising the SACP to '###' from '###-'. + We are affirming our '###' long-term and 'A-2' short-term issuer credit ratings on Haitong. At the same time, we are affirming the 'cnA' long-term and 'cnA-2' short-term Greater China regional scale ratings on the company. + The stable outlook reflects our expectation that Haitong will maintain its business and financial profiles as well as its government-related entity status over the next two years. HONG KONG (Standard & Poor's) July 27, 2015--Standard & Poor's Ratings Services said today that it had affirmed its '###' long-term and 'A-2' short-term issuer credit ratings...

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