S&P rates Zhongtai Securities BBB-

S&P said it assigned its BBB- long-term issuer credit rating and A-3 short-term issuer credit rating to Zhongtai Securities Co. Ltd.

The outlook on the long-term rating is stable.

“Our ratings on Zhongtai Securities reflect its midmarket position with some geographic business concentration in the province of Shandong. The securities firm has strong capitalization with controlled investment growth and risk management capabilities commensurate with its business profile.

“Having said this, we view its stand-alone credit profile (SACP) at the lower end of bb+ considering peer relativities, limiting its rating upside potentials from events such as capital infusions that are typically credit positive,” S&P said in a news release.

The ratings also reflect S&P’s view that Zhongtai Securities benefits from a moderately high likelihood of extraordinary support from Shandong provincial government, if needed, the agency added.

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