Haitong Securities Co. Ltd.'s strong capitalization will buffer its overall credit profile as the China-based company implements a strategy to strengthen risk-monitoring and tighten investment-risk appetite. That said, a longer track record is needed to confirm the effectiveness of Haitong's risk management and internal control measures. We have affirmed the 'BBB' long-term and 'A-2' short-term issuer credit ratings on Haitong. At the same time, we affirmed the issue ratings on debt guaranteed by Haitong. The stable outlook reflects our expectation that Haitong will continue to strengthen its risk management and lower risk appetite while maintaining a strong capitalization and market position. On July 28, S&P Global Ratings affirmed its 'BBB' long-term and 'A-2' short-term issuer credit ratings on Haitong Securities.
