Very strong link with the Shandong provincial government Strong capitalization with relatively low leverage compared to listed peers Potential operational risk and asset quality pressures Business concentration in Shandong province The stable outlook on Zhongtai Securities Co. Ltd. (Zhongtai Sec) reflects our expectation that the company will maintain its current market position, commensurate risk management for its business profile, and conservative leverage. We also see a moderately high likelihood of support from the province of Shandong if needed. We could lower the rating on Zhongtai Sec if the company's stand-alone credit profile (SACP) weakens by one notch. This could occur if: (1) Zhongtai Sec (including its subsidiaries) aggressively takes on risk or new products not adequately captured by its risk
