Research Update: Haitong Bank Outlook Revised To Negative From Stable After Similar Action On Parent; 'BB/B' Ratings Affirmed

We believe Haitong Securities Co. Ltd.'s weakening earnings generation could negatively impact its group credit profile and reduce its capacity to provide extraordinary support to its strategically important subsidiary Haitong Bank S.A. We therefore revised our outlook on Haitong Bank to negative from stable and affirmed the 'BB/B' ratings. The negative outlook on Haitong Bank indicates that we could lower the ratings in the next 12-18 months if we believe the parent's capacity to support its Portuguese subsidiary has reduced. On Feb. 9, 2024, S&P Global Ratings revised its outlook on Haitong Bank S.A. to negative from stable. At the same time, we affirmed our 'BB/B' long- and short-term issuer credit ratings. The negative outlook on Haitong Bank mirrors that

...To From Issuer Credit Rating ##/Negative/B ##/Stable/B SACP b b Anchor ###- ###- Business position Constrained (-2) Constrained (-2) Capital and earnings Strong (1) Strong (1) Risk position Constrained (-2) Constrained (-2) Funding and liquidity Moderate/Adequate (-1) Moderate/Adequate (-1) Comparable ratings analysis -1 -1 Support +3 +3 ALAC support GRE support Group support +3 +3 Sovereign support Additional factors...

Research Update