We expect China-based Haitong to maintain its strong retail brokerage franchise, market position in securities-related businesses, and earnings capacity over the next 12-24 months. A number of factors have affected Haitong's RAC ratio, and on balance we expect it to remain above 15%, consistent with a "very strong" capitalization and one notch up from "strong". We are therefore raising the SACP to 'bbb' from 'bbb-'. We are affirming our 'BBB' long-term and 'A-2' short-term issuer credit ratings on Haitong. At the same time, we are affirming the 'cnA' long-term and 'cnA-2' short-term Greater China regional scale ratings on the company. The stable outlook reflects our expectation that Haitong will maintain its business and financial profiles as well as its government-related
