Fitch drops Primasia to junk

Fitch Ratings said it downgraded Primasia Securities Co., Ltd.'s national long-term rating to BB from BBB- and its national short-term rating to B(twn) from F3(twn).

The outlook is stable.

The downgrade reflects the reassessment of risks inherent in Primasia's business model, according to the agency.

The company's reliance on proprietary trading makes the company's capital and liquidity position more vulnerable to wide swings in earnings performance, and also has high market risk exposure and limited diversification in its investment portfolio, the agency noted.

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