In 2017, Haitong Bank S.A. redefined its overly-ambitious strategy, readjusted its operating structure, and made senior managerial changes. It also received capital support from its parent and made progress in reducing its high stock of legacy nonperforming exposures. As a strategically important subsidiary of China-based Haitong Securities Co. Ltd. (BBB/Stable/A-2), we expect Haitong Bank to continue to benefit from extraordinary financial assistance from its parent, if needed. Haitong Bank has yet to prove it can build up a profitable and less-risky business model in a competitive operating environment. We are revising our outlook on Haitong Bank to stable from negative, as we see the potential for further deterioration of its creditworthiness as limited over the next 12 months. The stable
