Portugal-Based Haitong Bank Long-Term Rating Raised To 'BB' On Improving Capitalization; Outlook Stable

We consider that Haitong Bank S.A.'s capital position has strengthened and its asset quality is gradually improving. We expect Haitong Bank's risk-adjusted capital ratio to remain sustainably above 10%, factoring in the recently announced disposal of its Irish subsidiary, the additional tier 1 instrument subscribed by the parent, and a lighter, less risky balance sheet. As a strategically important subsidiary of China-based Haitong Securities Co. Ltd., we expect Haitong Bank to continue to benefit from extraordinary financial assistance from its parent, if needed. We are raising our long-term rating on Haitong Bank to 'BB' from 'BB-' and affirming our short-term rating at 'B'. The stable outlook reflects our expectation that over the next 12-18 months, Haitong Bank will remain focused

...October 10, 2019 - We consider that Haitong Bank S.A.'s capital position has strengthened and its asset quality is gradually improving. - We expect Haitong Bank's risk-adjusted capital ratio to remain sustainably above 10%, factoring in the recently announced disposal of its Irish subsidiary, the additional tier 1 instrument subscribed by the parent, and a lighter, less risky balance sheet. - As a strategically important subsidiary of China-based Haitong Securities Co. Ltd., we expect Haitong Bank to continue to benefit from extraordinary financial assistance from its parent, if needed. - We are raising our long-term rating on Haitong Bank to '##' from '##-' and affirming our short-term rating at 'B'. - The stable outlook reflects our expectation that over the next 12-18 months, Haitong Bank will remain focused on achieving a more sustainable business model, while gradually enhancing its financial profile. MADRID (S&P Global Ratings) Oct. 10, 2019--S&P Global Ratings said today that it...

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