S&P revises Hutai outlooks to positive

S&P said it revised the outlook for Huatai Securities Co. Ltd. and its subsidiary Huatai International Financial Holdings Co. Ltd. to positive from stable.

“The outlook revision reflects our view that Huatai Securities’ capital raising actions and new investment trading plan could enhance its capitalization sustainably. Such an improvement could bring Huatai Securities’ risk-adjusted capital (RAC) ratio to sustainably above 15%, our upgrade threshold,” said S&P in a press release.

S&P said it views Huatai International as a core subsidiary so its ratings and outlook mirror that of its parent.

“Huatai Securities will continue to benefit from a moderately high likelihood of timely and adequate extraordinary government support from the Jiangsu provincial government,” S&P said.

The agency affirmed its BBB long-term credit rating on both companies. S&P also affirmed the BBB long-term issue rating on the senior unsecured debt guaranteed by Huatai Securities.

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