Very strong links with the Shandong provincial government Strong capitalization with low leverage compared with listed peers Potential operational risks and asset-quality pressure from legacy book Business concentration in Shandong province The stable outlook on Zhongtai Securities Co. Ltd. (Zhongtai Sec) reflects our expectation that the company will maintain its market position, commensurate risk management, and conservative leverage over the next 24 months. It should also have a moderately high likelihood of receiving support from the province of Shandong, if needed. Shandong's credit profile is stable, in our opinion. We could lower the ratings on Zhongtai Sec if our view of the company's SACP weakens by two notches, or if we assess that government support has weakened and the SACP
