...- The unexpected material loss for Haitong Securities Co. Ltd.'s (HTS) Hong Kong subsidiary in 2022 reflects HTS' weaker internal control on subsidiary management than we expected. - We have therefore lowered our assessment of HTS' stand-alone credit profile (SACP) by one notch to '##+'. - The Shanghai government remains a key shareholder to provide moderate support to HTS if necessary. - We have affirmed our '###/A-2' issuer credit ratings on HTS and its Hong Kong subsidiary, Haitong International Securities Group Ltd. (HTI). The outlook on the long-term ratings is stable. We also affirmed the ratings on the debt HTS and HTI issued or guaranteed. - The stable rating outlook on HTS reflects our expectation that the company will sustain its strong capitalization and business position, and maintain close links with the Shanghai government over the next 12-24 months. We also expect HTS to keep tightening its control over subsidiaries and restoring its earnings stability on par with the sector...
