Research Update: Haitong Bank S.A. Ratings Affirmed At 'BB/B', Despite Weaker Creditworthiness Of Parent; Outlook Stable

In March 2023, we lowered our assessment of Haitong Securities Co. Ltd.'s (HTS's) stand-alone credit profile (SACP) by one notch to 'bb+', following the profit warning by the company's Hong Kong subsidiary. At the same time, we affirmed our 'BBB/A-2' long- and short-term issuer credit ratings on HTS. The outlook remained stable. Our ratings on Haitong Bank S.A. (HB), the Portugal-based subsidiary of HTS, are based on its strategic importance to its parent. We expect HTS will support HB under most foreseeable circumstances. Despite HTS's weaker intrinsic creditworthiness, we affirmed our 'BB/B' long- and short-term issuer credit ratings on HB. The stable outlook reflects our expectation that HB will remain focused on strengthening its business model and on increasing its

...- In March 2023, we lowered our assessment of Haitong Securities Co. Ltd.'s (HTS's) stand-alone credit profile (SACP) by one notch to '##+', following the profit warning by the company's Hong Kong subsidiary. At the same time, we affirmed our '###/A-2' long- and short-term issuer credit ratings on HTS. The outlook remained stable. - Our ratings on Haitong Bank S.A. (HB), the Portugal-based subsidiary of HTS, are based on its strategic importance to its parent. We expect HTS will support HB under most foreseeable circumstances. - Despite HTS's weaker intrinsic creditworthiness, we affirmed our '##/B' long- and short-term issuer credit ratings on HB. - The stable outlook reflects our expectation that HB will remain focused on strengthening its business model and on increasing its assets over the next 12-18 months to become sustainably profitable....

Research Update