S&P stabilizes Orient Securities view

S&P said it revised its outlook on Orient Securities Co. Ltd. to stable from negative and affirmed its BBB- rating.

The outlook revision reflects S&P’s view that Orient is likely to maintain a risk -adjusted capitalization ratio of more than 10% over the next two years.

“This is the threshold for a strong capital and earnings assessment. We attribute the improvement in the ratio to the China-based securities firm's slower growth of its proprietary investments, particularly its equities portfolio. Orient's profitability is also improving as demonstrated by its annualized return on average equity (ROAE) of 9.2% in the first half of 2021, compared with 4.9% in 2020,” the agency said in a press release.

S&P said it also forecasts Orient will maintain its business position, capitalization, risk position, liquidity and funding at current levels over the next 12-24 months.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.