Hikvision has a leading competitive position in a niche market, good operating efficiency, and minimal debt leverage. The China-based video surveillance company also benefits from strong parental support and favorable government policies. Hikvision's growing software technology capability but limited hardware differentiation, high concentration in the domestic market, fewer product lines than international technology conglomerates, and exposure to intensifying competition in the highly fragmented market temper these strengths. We are assigning our 'A-' long-term corporate credit rating to Hikvision and our 'A-' long-term issue rating to the proposed senior unsecured notes that the company plans to issue. We are also assigning our 'cnAA' long-term Greater China regional scale rating to the company and the notes. The stable outlook reflects our expectation
