S&P rates Hangzhou Hikvision notes A-

Standard & Poor’s said it assigned an A- long-term corporate credit rating to Hangzhou Hikvision Digital Technology Co. Ltd., along with a cnAA Greater China regional scale rating.

S&P also said it assigned an A- long-term issue rating and cnAA Greater China regional scale rating to a proposed issue of senior unsecured notes to be issued by the company.

The outlook is stable.

The ratings reflect the company’s BBB- stand-alone credit profile and a three-notch uplift for parental support, S&P said.

This is due to the company’s strategically important subsidiary of China Electronics Technology Corp., a key central state-owned enterprise specializing in the electronics and communication business, the agency said.

Hangzhou Hikvision is expected to maintain its leading position in the video-surveillance systems and solutions market, given its wide suite of equipment and superior technology capability than domestic competitors, S&P said.

The company also has a first-mover advantage and benefits from robust demand in China, the agency said.

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