May 06, 2020 17:15 JST

S&P Global Ratings Affirm HTSC & Huatai International's Positive Outlook

HONG KONG, May 06, 2020 - (ACN Newswire) - S&P Global Ratings today released a report affirming its positive outlook, 'BBB' long-term and 'A-2' short-term issuer credit ratings on HTSC (Stock Code: 6886:HK; "The Company") and its core subsidiary, while also affirming the Company's 'BBB' long-term issuer credit ratings. S&P Global Ratings believes the Company's risk-adjusted capital (RAC) ratio can be sustainably managed above 15% for the next one to two years, and thus reach its threshold for a potential upgrade.

"The positive outlook on HTSC reflects our view of a one-in-three chance that the strengthening capitalization could result in an upgrade over the next two years. Our view also reflects the Company's adequate first-quarter earnings amid the COVID-19 outbreak in China and controlled exposure to directional equity trading, while maintaining a buffer above our threshold for a very strong capital assessment, despite market volatility."

This affirmed rating and denoted upgrade will further cement HTSC's position within the global capital market, further reduce the cost of overseas financing, and create beneficial conditions for cross-border business. HTSC's annual revenue in 2019 was RMB 32.437billion, up 32.36% year-on-year, of which Huatai International accounted for 12.48%.



Sectors: Daily Finance, Daily News

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