Moody's lowers Everbright view to stable

Moody's Investors Service said it affirmed Everbright Securities Co. Ltd.'s Baa3 long-term issuer rating and P-3 short-term issuer rating.

Moody's also said it changed the outlook to stable from positive.

The outlook revision reflects the weakening of the company's financial profile, driven by reduced profitability and increased earnings volatility, the agency said.

The company has recorded a loss of about RMB 1.5 billion from a private equity investment, which lowered its 2018 profitability significantly, Moody's said.

Such a large loss exposes weaknesses in the company's risk management and internal controls, the agency explained.

The ratings also consider continued expectations for a very high level of affiliate support from China Everbright Group, as well as a high level of support from the government of China, if needed, Moody's said.

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